The Hong Kong Securities and Futures Commission (SFC) has warned investors against a fake trading platform called HKCEXP. Although HKCEXP is not registered with the SFC, it has been accused of deceiving investors by falsely claiming to be affiliated with the regulator. This warning comes amid the SFC’s new initiative to license cryptocurrency exchanges operating in Hong Kong. Allegedly, fake exchanges deceive investors by creating fake websites that resemble licensed platforms. Here are the details…
Warning from Hong Kong regulator to cryptocurrency platform
The Hong Kong Securities and Futures Commission (SFC) has issued an alert regarding a suspicious trading platform called HKCEXP. HKCEXP has been accused of deceiving investors by falsely claiming affiliation with the regulator, despite not being registered with the SFC. This cautionary warning comes amid the SFC’s recent announcement requiring cryptocurrency exchanges operating in Hong Kong to apply for a compulsory operational license by February 29 or cease operations by May 31.
In response to this directive, the SFC received applications from 22 crypto trading platforms, including four that had previously submitted applications under a voluntary regime. But despite regulatory efforts, fraudulent entities like HKCEXP continue to cause trouble in Hong Kong’s crypto world. As one victim reported to the SFC, HKCEXP misleadingly presented itself as an “SFC-registered business” while allegedly providing a fake address in Hong Kong and imposing significant withdrawal fees.
A list of eligible crypto platforms is maintained
To address such fraudulent activities and promote investor protection, the SFC plans to maintain and publicly disclose a list of crypto platforms that have been granted operational licences. cryptokoin.com As we reported, the operational capacities of exchanges that cannot meet the deadline are now restricted. They are also prohibited from conducting marketing activities within the region. The problem of impersonation extends beyond the HKCEXP. Because SFC has recently uncovered several fake websites imitating reputable local cryptocurrency exchanges.
These fake sites aimed to deceive investors by copying the domain names of licensed exchanges such as OSL Digital Securities and Hash Blockchain Limited (also known as HashKey). To protect investors and preserve the integrity of the crypto trading environment, the SFC advises the public to consult its official registry. This registry contains comprehensive lists of licensed persons, registered institutions, and a specialized directory for licensed virtual asset trading platforms. By consulting these official sources, investors can access accurate information about licensed entities and legitimate websites, thus reducing the risk of falling victim to fraudulent schemes.
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