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Hong Kong SFC Issues Warnings For Two More Crypto Companies

The Securities and Futures Commission (SFC) of Hong Kong has raised concerns about potential fraud involving crypto entities Hong Kong Digital Research Institute and BitCuped. The SFC, collaborating with the Hong Kong Police Force, has blocked access to the websites associated with these entities. Cease-and-desist letters have been issued to the operators of the firms’ websites.

The SFC, prompted by a tip-off, found that HongKongDAO falsely claimed to have applied for operating licenses with the SFC and the government, selling a digital token named “HKD.”

The SFC suspects that HongKongDAO may be spreading false and misleading information about itself and its business through online channels. Specifically, the regulator notes that misleading information related to HongKongDAO could lead individuals to believe its services are properly licensed and legitimate, potentially encouraging investments in the HKD token. Notably, the SFC highlights that individuals named ‘Laura Cha’ and ‘Nicolas Aguzin’ on BitCuped’s website have no affiliations with BitCuped.

This warning is part of a broader regulatory effort by the SFC to protect investors in the volatile cryptocurrency landscape. The commission advises the public to exercise caution, especially when engaging with investment opportunities on social media and messaging apps. The emphasis is on verifying the legitimacy of entities before making any financial transactions.

In addition to HongKongDAO, the SFC has flagged BitCuped for making false claims of association with high-profile individuals, ‘Laura Cha’ and ‘Nicolas Aguzin,’ who are not affiliated with BitCuped. The SFC’s move is in response to concerns about scammers using well-known names to deceive investors. The regulator underscores the importance of due diligence and caution when engaging in virtual asset investments.

The SFC’s proactive stance is aligned with global regulatory trends, reflecting efforts to enhance investor safety in the cryptocurrency domain. The commission’s recent actions are part of ongoing measures to prevent crypto frauds, such as the JPEX scandal, which involved significant financial losses. The SFC reiterates the need for vigilance in making investment decisions and encourages thorough research to mitigate risks associated with potential fraudulent schemes in the digital asset sector.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.