The public has been cautioned by Hong Kong’s Securities and Futures Commission (SFC) about phony websites that pretend to be authorized local cryptocurrency exchanges.
The SFC issued a public warning on March 4th, alerting people to be wary of dubious websites posing as two authorized cryptocurrency trading platforms: HSKEX, which purports to be Hash Blockchain Limited, and another that imitates OSL Digital Securities Limited.
Following reports of issues with cash withdrawals from the fraudulent platforms, the fraudulent websites were placed on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List.
The victims also mentioned that when they tried to access their money, they were met with exorbitant fees and taxes. The Hong Kong Police Force has taken action to prevent access to the identified fake websites in response to the SFC’s report.
Before making any transactions, investors are advised to proceed cautiously and carefully confirm the validity of any virtual asset trading site. The most recent alert coincides with an increase in crimes involving virtual assets in Hong Kong, which have almost tripled since 2021.
However, different numbers apply to arrests and prosecutions depending on the particular situation. For example, authorities have detained seventy people in the JPEX case, but no charges have been brought yet.
Only two Hong Kong exchanges have received licenses from the SFC thus far: OSL and HashKey Exchange, which were authorized in December 2020 and November 2022, respectively.
Twenty-two trading platforms have also submitted applications to the local authorities to obtain licenses to operate in the area.
