Hong Kong’s Securities and Futures Commission flags unregistered VATPs
Hong Kong police have taken initiatives to block companies' websites and social media pages at the request of the SFC. The SFC previously said it would review VATPs that had not completed their registration applications. Regulator warns unregistered VATPs will face criminal prosecution
SFC raises alarm over three firms operating in Hong Kong without proper licenses
According to Finance Magnates, the three firms, Tokencan, VBIT Exchange, and HKD.com Corporation, were in violation of Hong Kong regulations, including false claims, fraud, and providing false information to unsuspecting investors, who faced difficulties in withdrawing their funds.
VBIT Exchange allegedly marketed its VATP services to investors in Hong Kong without a license, claiming to operate legally. HKD.com Exchange asked investors to deposit funds into some bank accounts for investment purposes, but the SFC found that investors faced difficulties in making withdrawals. The firm also has an identity similar to another company it is not related to, which could potentially confuse investors.
Tokencan reportedly offered crypto trading services without a license. The SFC discovered that the company used social media platforms to direct investors to some websites for crypto investments. The regulator also noted that Tokencan claimed it filed for licensing in addition to investor reports of frozen accounts, among other false claims.
Hong Kong police block the websites
Following the discoveries, the SFC warned the public to be cautious and aware of potential fraud when making investment decisions. This comes as fraud cases involving virtual assets may manifest in various ways. "If in doubt about the licensing status of a VATP, please refer to the SFC's list of licensed virtual asset trading platforms," said the authority.
