The Securities and Futures Fee (SFC) in Hong Kong has issued a public warning relating to the rise of fraudulent web sites impersonating licensed crypto exchanges within the area.
The warning, issued on Mar. 4, focuses explicitly on the actions of two faux platforms: one pretending to be Hash Blockchain Restricted and working below the HSKEX model, and the opposite pretending to be OSL Digital Securities Restricted.
Hong Kong Securities Watchdog Flags Rise in Fake Crypto Platforms
The SFC has flagged these fraudulent web sites on its Suspicious Digital Asset Buying and selling Platforms Alert Listing after receiving experiences of customers struggling to withdraw funds from these illegitimate platforms. Victims have additionally raised issues about encountering extreme charges and taxes when making an attempt to entry their funds.
Responding swiftly to the SFC’s notification, the Hong Kong Police Force has instantly blocked entry to the recognized fraudulent web sites. Traders are strongly suggested to train warning and conduct thorough due diligence to confirm the legitimacy of any digital asset buying and selling platform earlier than partaking in transactions.
This newest warning from the SFC comes in opposition to a big improve in digital asset-related crimes in Hong Kong, practically tripling since 2021. Nevertheless, detailed statistics regarding arrests and prosecutions stay elusive, with particular variations primarily based on particular person instances. A notable instance is the JPEX case, which noticed the arrest of 70 people by authorities, though no expenses have been filed.
Notably, the Securities and Futures Commission (SFC) has solely granted licenses to 2 exchanges in Hong Kong: OSL and HashKey Alternate, awarded in December 2020 and November 2022, respectively. Along with these licensed platforms, 22 trading platforms have submitted functions in search of approval from the native regulator to function within the area.