Hong Kong SFC Continues Crypto Oversight, Reveals Dozens of New Fake Platforms

In a significant growth regarding crypto asset safety, Hong Kong’s Securities and Futures Fee (SFC) has flagged 33 new suspicious web sites falsely claiming to be affiliated with HashKey, a licensed cryptocurrency buying and selling platform within the area.

This announcement will increase the variety of reported HashKey impersonators to 45. In accordance with the SFC, these fraudulent platforms used minor alterations in official hyperlinks related to HashKey in an try and deceive potential traders.

HashKey Response And Escalating Issues in Hong Kong Crypto Market

HashKey, considered one of just a few SFC-approved crypto exchanges, was fast to disassociate itself from these fraudulent entities. In an official assertion, the alternate emphasised that it had no reference to the impersonation platforms, reinforcing the necessity for shoppers to confirm hyperlinks and stay cautious. The assertion learn:

To mislead shoppers, fraudulent web sites will seem underneath completely different domains or with slight modifications or variations of the official HashKey Trade web site tackle www.hashkey.com by including a mixture of letters, numbers or symbols. HashKey Trade declares that it has no reference to the aforementioned fraudulent web sites. The web sites are usually not affiliated with HashKey Trade or its associates by any means. As such, we won’t settle for legal responsibility for any issues regarding the web sites.

Notably, over the previous three years, the SFC has been actively monitoring the cryptocurrency market in Hong Kong, figuring out not less than 91 suspicious buying and selling platforms so far.

This subject is a part of a broader regulatory problem confronted by Hong Kong authorities because the native crypto market matures. The state of affairs echoes the latest collapse of JPEX, a digital forex platform accused of working with no license and defrauding round 2,000 traders of 1.3 billion Hong Kong {dollars} (roughly $166 million).

The load of the scandal aftermath highlighted the significance of “rigorous oversight” and immediate motion in opposition to unlicensed operators.

Hong Kong Points New Operational Licenses

In the meantime, Hong Kong continues to broaden its regulated crypto ecosystem by introducing new operational licenses for digital asset platforms.

Earlier this week, the SFC introduced the approval of two extra Hong Kong-based exchanges—PantherTrade and YAX—rising the full variety of licensed platforms by two for the reason that regulator initiated its licensing program in 2024.

Publicly out there data from the Hong Kong authorities affirm that these newly licensed platforms are registered underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (AMLO), which serves because the regulatory framework for digital asset buying and selling platforms within the area.

Because the introduction of this regulatory measure in 2020, 10 crypto exchanges have acquired formal registrations, permitting them to function legally inside Hong Kong.

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