The Hong Kong Securities and Futures Commission (SFC) warned investors about the activities of three firms accused of virtual asset fraudulent activities. Some companies are alleged to carry out crypto-related activities without a proper license. This year, the SFC has flagged several firms involved in similar activities to protect investors. 

SFC Warns Against Tokencan, VBIT and HKD.com 

The financial regulators warned users in the jurisdiction against the activities of Tokencan, VBIT Exchange, and HKD.com Corporation. In a June 28 release, the SFC highlighted alleged offenses of the three platforms. According to the release, Tokencan operated in Hong Kong without a license and provided digital asset trading services to customers. 

Furthermore, the firm provided false information to the regulator coupled with the fact that investors reported withdrawal issues which led to an account freeze on the firm. Similarly, VBIT exchange is alleged to have marketed its services without a license including false claims on its website to be regulated by several authorities. 

HKD.com Corporation adopted a name closely related to another firm without any affiliations. Users were instructed to deposit funds but soon after reported some difficulties. 

“Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (ie, operating a virtual asset exchange) in Hong Kong and/or actively market such services to Hong Kong investors without a license.” 

Hong Kong Intensifies Regulatory Efforts 

The authorities alerted the Hong Kong Police to block the websites and social media pages including multiple warnings for users to prevent more victims. Hong Kong regulators have released several guidelines to streamline several aspects of the crypto market to protect users. 

“Online investment scams may involve any type of assets and are perpetrated through multiple channels, and investors can suffer substantial losses. They should stay vigilant and beware of fraud when making investment decisions.”

Also Read: SEC Sues ConsenSys For Conducting Securities Via MetaMask

The post Hong Kong’s Securities Regulator Flags Three Crypto Firms For Fraud appeared first on CoinGape.

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