March 27, 2024
Hong Kong's SFC Takes Action Against Suspected Crypto Frauds
Latest Cryptocurrency News

SFC Warns Against Cryptocurrency Fraud Involving Hong Kong Entities

The Securities and Futures Commission (SFC) of Hong Kong has cautioned about suspected fraud linked to crypto entities such as Hong Kong Digital Research Institute and BitCuped. The SFC stated that the Hong Kong Police Force intervened by blocking access to BitCuped and the Hong Kong Digital Research Institute’s websites, expressing concerns that users might fall prey to unauthorized investment schemes. Additionally, the regulator issued cease-and-desist letters to the operators of these websites.

In a notice released on December 6, the SFC highlighted suspicions that Hong Kong DAO might be circulating false and misleading information regarding its operations through online platforms. The SFC pointed out that BitCuped’s website falsely claims ‘Laura Cha’ and ‘Nicolas Aguzin’ as its Chairperson and Chief Executive Officer, respectively, despite having no association with the company.

The SFC emphasized that misleading information about Hong KongDAO could mislead individuals into thinking its services were licensed and legitimate, potentially leading to investments in the HKD token. The regulator clarified that Cha and Aguzin were affiliated with the Stock Exchange of Hong Kong, not BitCuped.

In October, the SFC announced its intentions to update its guidelines concerning digital currency sales and regulations, considering market changes and feedback from the industry. Commencing in June 2024, exchanges operating within Hong Kong must hold a virtual asset service provider license issued by the SFC.

Image by freepik

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