In a recent update, the Securities and Futures Commission (SFC) of Hong Kong has issued a warning regarding potential fraudulent activities associated with crypto entities Hong Kong Digital Research Institute and BitCuped.
The SFC reported that the Hong Kong Police Force has taken action by blocking access to the BitCuped and Hong Kong Digital Research Institute platforms. This move comes as the regulatory body expressed concerns that users could be susceptible to deceptive investment schemes being promoted by these entities. In response, the SFC has issued cease and desist letters to the operators of the websites in order to immediately halt their activities.
The SFC also pointed out that HongKongDAO may be spreading false and misleading information. The notice emphasized that the platform’s marketing and information could mislead individuals into thinking that its services were duly licensed and legitimate.
Of particular concern is the promotion of the HKD token as an investment opportunity. The SFC highlighted that BitCuped’s website made misleading claims about its leadership. The platform falsely asserted that ‘Laura Cha’ and ‘Nicolas Aguzin’ served as its Chairman and Chief Executive Officer, even though they had no affiliations with BitCuped.
In a clarifying statement, the SFC noted that Laura Cha and Nicolas Aguzin are executives associated with the Stock Exchange of Hong Kong, indicating no connection to BitCuped. This cautionary move by the regulatory body aims to protect investors from potential scams and unauthorized investment activities that exploit misleading online narratives.
This recent development follows the SFC’s announcement in October outlining its intentions to update policies related to digital currency sales and requirements. Taking into account evolving market dynamics and industry feedback, the SFC mandated that exchanges operating within Hong Kong must possess a virtual asset service provider license starting from June 2024.
In the words of the SFC, “Those who fall victim can suffer substantial losses… Investors should stay vigilant and beware of fraud when making investment decisions.”
The regulatory framework is designed to enhance consumer protection and create a more secure environment for cryptocurrency transactions within the region. As the crypto landscape continues to evolve, regulatory bodies globally are increasingly vigilant, emphasizing the need for investors to exercise caution and conduct thorough due diligence before engaging with crypto platforms.
