The Hong Kong Securities and Futures Commission (SFC) has announced the start of its latest anti-scam and anti-crypto fraud program.
The SFC clarified today in a public notification that the sale of CIS products to the general public in Hong Kong without the SFC’s approval is strictly forbidden. In addition, the commission cautioned investors to exercise extreme caution if they still intend to defy the law and invest in an unapproved investment program.
Additionally, the SFC published its most recent ‘Suspected Unauthorized CIS Alert List,’ which includes investment arrangements that exhibit specified CIS characteristics.
International real estate, as well as nontraditional assets and investments, such as digital tokens and initial coin offerings, may be included in this category of investment arrangements (ICO).
“Unauthorised investment arrangements are highly risky, and investors may lose all their investments…Investors are urged to check the new alert list and find out whether the arrangement is authorized by the SFC before investing.”, said Ms. Christina Choi, the SFC’s Executive Director of Investment Products.
Scams involving initial coin offerings (ICOs)
Initial Coin Offerings (ICOs) are viewed as a potential threat by Hong Kong’s regulatory watchdog because they were infamously popular a few of years ago due to their fraudulent nature and are now a potential hazard.
It was misappropriated by scammers to gather money from investors for multi-million-dollar projects that never got off the ground, rather than serving as a source of finance for cryptocurrency ventures at the end of a bull run.
Hong Kong’s cryptocurrency frauds are making their way to the top of the heap. Earlier this month, the Hong Kong police detained 19 people in connection with a $1.4 million cryptocurrency scam that affected around 170 victims around the world.
In connection with the investigation, the police stated that they had amassed nine computers, one hundred and eighty smartphones, HKD 1.4 million in cash, HKD 50,000 in cryptocurrencies, and a sports automobile.
The Hong Kong police also arrested four persons in July for allegedly laundering $150 million through bank accounts in Singapore over a 15-month period, according to the authorities.
