The Securities and Futures Commission of Hong Kong (SFC) has sounded the alarm against two dubious trading platforms, HKCEXP and EDY, today (Monday). In an official statement released on its website, the SFC cautioned investors about engaging with these platforms, citing suspicions of fraudulent activities.

Allegations of False Claims and Withdrawal Woes

According to the SFC, EDY is purported to be a virtual asset trading platform, falsely claiming affiliation with a financial institution in Hong Kong and a digital token system developed by another financial institution. However, investigations have revealed no such associations exist. Moreover, investors have lodged complaints stating they encountered difficulties withdrawing funds from the platform post deposits, indicating potential malpractice.

Similarly, HKCEXP, another entity claiming to be a virtual asset trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, allegedly operates with a fake Hong Kong address and has misrepresented itself as an "SFC-registered company." Investors have reported instances where they were coerced into paying exorbitant fees under the guise of "taxes" to facilitate withdrawals.

Hong Kong SFC Warns Public against HKCEXP for Suspected Crypto Fraud https://t.co/zqF7VdVEsC pic.twitter.com/RU6ERh7gkr

— Coinspeaker (@coinspeaker) March 25, 2024

In response to these alerts, the SFC advises that investors refrain from dealing with these platforms and report any suspicious activities to the regulator promptly. They emphasize the importance of verifying the legitimacy of trading platforms and ensuring compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with regulatory requirements before making any investment decisions.

SFC Warning on Bybit's Unlicensed Offerings

The SFC issued a warning to investors regarding Bybit and its offerings in the cryptocurrency space, as reported earlier by Finance Magnates. Bybit, a cryptocurrency exchange, lacks the necessary licensing, posing risks to investors. The SFC identified 11 of Bybit's products as potentially suspicious investments, including futures contracts, options, leveraged tokens, and other crypto-related services.

These products have been marketed to investors in Hong Kong without proper authorization, exposing them to significant financial risks. Dealing with crypto-related products in Hong Kong is regulated, requiring entities to obtain licensing from the SFC.