SFC Warns against Fraudulent Crypto Exchanges in Hong Kong

SFC Warns against Fraudulent Crypto Exchanges in Hong Kong


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.

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 malpractices.

EDY, Source: SFC

Similarly, HKCEXP, another entity claiming to be a virtual
asset trading platform , 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.

HKCEXP, Source: SFC

In response to these alerts, the SFC advises investors to
refrain from dealing with these platforms and to report any suspicious
activities to the regulator promptly. They emphasize the importance of
verifying the legitimacy of trading platforms and ensuring compliance 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 by Finance
Magnates
earlier. 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.

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.

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 malpractices.

EDY, Source: SFC

Similarly, HKCEXP, another entity claiming to be a virtual
asset trading platform , 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.

HKCEXP, Source: SFC

In response to these alerts, the SFC advises investors to
refrain from dealing with these platforms and to report any suspicious
activities to the regulator promptly. They emphasize the importance of
verifying the legitimacy of trading platforms and ensuring compliance 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 by Finance
Magnates
earlier. 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.





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