Hong Kong SFC Raises Concerns Over Unlicensed Operations of Three VATPs

Hong Kong’s Securities and Futures Commission popularly known as (SFC) has passed a sound word of warning. This was as a regard to some entities having operations and engagement which are suspected to be of fraudulent practices and virtual asset- related actions.

These entities are also allegedly operating Virtual asset trading platforms (VATPs) without the prerequisite licenses. The anti-Money laundering and Counter-Terrorist Financing Ordinance states that any provision or marketing of virtual values and services that are active to Hong Kong stakeholders, who do not have license, are strictly forbidden or banned.

Tokencan Falsely Claims To Provide Licensed Cryptocurrency Services

One of the entities picked out as regards to this matter is Tokencan, a Hong Kong platform that allegedly provides cryptocurrency services and trading without a license. The organization attracts its investors on social media to its websites for cryptocurrency services and investments.

SFC took note and observed that the information provided by the firm was false. It claimed falsely to have obtained a filed license application with the SFC and has also had shareholder’s report of frozen accounts and withdrawal matters.

The next is VBIT exchange, which is allegedly said to market its supposed virtual asset trading services to investors in Hong Kong without a required license. It Claims falsely to be controlled by officials in different administrative sectors on its web addresses.

Another entity connected to this unlicensed operation is the HKD.com Corporation. This entity uses a logo and a name that is closely and almost the same to different VATP that it’s not related to. Investors were told to push cash into some bank account that had been designated for the purpose of investment. But several investors had complained of inability to withdraw funds.

The Hong Kong Police Have Blocked Access To Related Websites

Responding to SFC’s request, Hong Kong Police have decided to block access to the related websites and social media pages. But the public still needs to stay alert as scammers might just make new sites with similar names.

Online investment scams can attack any kind of asset and it can be achieved via all sorts of channels, causing major losses for people. The SFC encourages the community to stay sharp and watch out for fraud when making investment choices.

The authority stated that investors might risk losing their entire investment held on the platform if it ceases operation, collapses, gets hacked, or experiences any misappropriation of assets. They advised that if there is any doubt about the licensing status of a VATP, investors should refer to the SFC’s list of licensed virtual asset trading platforms.