The Securities and Futures Commission (SFC) issued a warning today (Friday) about several entities suspected of engaging in fraudulent virtual asset-related activities. These entities are also purportedly operating virtual asset trading platforms (VATPs) in Hong Kong without the required licenses.

SFC Flags Fraudulent Platforms

Under the Anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and Counter-Terrorist Financing Ordinance, any provision or active marketing of virtual asset services to Hong Kong investors without a licence is strictly prohibited. The entities identified in this regard are:

Tokencan: This platform claims to provide cryptocurrency trading services in Hong Kong without a licence. Tokencan uses social media to direct investors to its websites for cryptocurrency investments. The SFC noted that Tokencan provided false information, falsely claimed to have filed a licence application with the SFC, and has had investor reports of frozen accounts and withdrawal issues.

VBIT Exchange: This entity is suspected of marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term its purported VATP services to Hong Kong investors without a licence. It falsely claimed to be regulated by authorities in various jurisdictions on its website.

HKD.com Corporation: This entity uses a name and logo very similar to another VATP it is not associated with. Investors were asked to deposit funds into designated bank accounts for investment purposes. Subsequently, investors reported difficulties in withdrawing funds.

Verify VATP Licensing Status

In response to the SFC's request, the Hong Kong Police have taken steps to block access to the relevant websites and social media pages. However, the public should remain cautious as scammers may continue to create websites with similar domain names.

Online investment scams can involve any type of asset and are often conducted through various channels, leading to significant losses for investors. The SFC advises the public to stay vigilant and be aware of potential fraud when making investment decisions.

“Investors may risk losing their entire investment held on the platform if it ceases operation, collapses, is hacked or otherwise suffers from any misappropriation of assets. If in doubt about the licensing status of a VATP, please refer to the SFC’s List of licensed virtual asset trading platforms,” the authority stated.