The Securities and Exchange Commission (SFC) of Hong Kong today warned the public about entities suspected of fraudulent activities related to virtual assets and/or operating a virtual asset trading platform (VATP) in Hong Kong without a license.
Tokencan – an alleged VATP operating in Hong Kong without a license, which claims to provide cryptocurrency trading services and uses social media platforms to refer investors to its websites for cryptocurrency investments. He provided the SFC with false information and falsely claimed that he had applied for a license to the SFC. Investors reported withdrawal issues and their accounts were subsequently frozen.
VBIT Exchange – an entity suspected of actively marketing its purported VATP services to unlicensed Hong Kong investors and falsely claiming to be regulated by authorities in various jurisdictions on its website.
HKD.com Corporation – an entity that has adopted a name and logo that is very similar to another VATP when not associated. Investors were asked to deposit funds into designated bank accounts for investment purposes, but then reported difficulties with withdrawing funds.
Pursuant to the Anti-Money Laundering and Anti-Terrorist Financing Ordinance, it is an offense to carry on a virtual asset service business (eg operating a virtual asset exchange) in Hong Kong and/or actively dispose of such services in Hong Kong unlicensed investors.
At the request of the SFC, the Hong Kong Police has taken steps to block access to relevant websites and social media pages. Despite the actions taken, the public should be aware that fraudsters may continue to create websites with similar domain names.
The SFC has also published Tokencan, VBIT Exchange and HKD.com Corporation and their respective websites on the SFC’s Alert List for Suspicious Virtual Asset Trading Platforms.
Online investment scams can involve any type of asset and are perpetrated through multiple channels, and investors can suffer significant losses. They should remain vigilant and watch out for fraud when making investment decisions.
Once again, the SFC warns investors against trading virtual assets in unregulated VATPs. Investors may risk losing their entire investment held on the Platform if it ceases to function, collapses, is hacked or otherwise suffers from any misappropriation of assets. If you are in doubt about the licensing status of a VATP, please refer to the SFC list licensed virtual asset trading platforms;
The SFC will not hesitate to take enforcement action against fraudulent or unlicensed VATPs in Hong Kong where appropriate.