Hong Kong’s SFC Issues Warning Against Two Crypto Entities Amid Fraud Concerns

The SFC’s notice raises serious concerns about these entities disseminating false and misleading information.
Hong Kong’s Sfc Issues Warning Against Two Crypto Entities Amid Fraud Concerns

Hong Kong Securities and Futures Commission (SFC) has restricted access to the websites of BitCuped and Hong Kong Digital Research Institute (also known as HongKongDAO), two cryptocurrency businesses on suspicions of fraudulent activities. In an effort to prevent prospective investors from being tricked into making illegal investments, the Hong Kong Police Force and the community collaborated on this December 6 announcement.

These organizations’ dissemination of inaccurate and misleading material is a major concern raised by the SFC’s notice. In particular, BitCuped is accused of making misleading claims about its leadership, and HongKongDAO is accused of representing its company in an untruthful manner on the internet. Without obtaining permission or affiliation, BitCuped allegedly designated notable executives from the Stock Exchange of Hong Kong, Laura Cha and Nicolas Aguzin, as its top officials. People could be misled by this false information into thinking that these organizations are legitimate and have the necessary licenses, which could encourage careless investments in HongKongDAO’s HKD cryptocurrency.

This action is part of Hong Kong’s larger initiatives to fortify its digital currency regulations. In response to input from the industry and the quickly changing market, the SFC said in October that it will be updating its regulations on the requirements and sales of digital currencies. Cryptocurrency exchanges in Hong Kong will have to apply for a virtual asset service provider license from the SFC beginning in June 2024. This is a big move in the direction of stricter control and regulation for the bitcoin industry.

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