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Hong Kong’s SFC Issues Warning on Fraudulent Crypto Platform HKCEXP, Encourages Investor Vigilance

The Securities and Futures Commission of Hong Kong (SFC) has issued a warning about a dubious trading platform known as HKCEXP.

This platform has been misleading investors by claiming affiliation with the regulatory body, despite not being registered with the SFC.

The alert comes in the wake of the SFC’s announcement that cryptocurrency exchanges operating in Hong Kong had until February 29 to file for a mandatory operational license or cease operations by May 31.

In response to this directive, the SFC received applications from 22 crypto trading platforms, which included four that had previously applied under a voluntary regime.

However, the challenge of counterfeit entities posing as credible exchanges persists in Hong Kong, with HKCEXP being the latest to deceive investors by falsely proclaiming itself as an “SFC-registered business.”

Further accusations against HKCEXP include providing a fraudulent address in Hong Kong and imposing hefty withdrawal fees, as reported by one of the victims to the SFC.

To combat these fraudulent activities and enhance investor safety, the SFC plans to keep and publicly share a list of crypto platforms awarded operational licenses.

READ MORE: SEC Delays Decision on Grayscale Ethereum ETF, Citing Need for Further Review Amid Industry Scrutiny

Exchanges that missed the application deadline are now restricted in their operational capabilities and are prohibited from conducting marketing activities within the region.

The issue of impersonation extends beyond HKCEXP.

The SFC recently uncovered several fake websites mimicking prominent local cryptocurrency exchanges.

These counterfeit sites aimed to deceive investors by emulating the domains of OSL Digital Securities and Hash Blockchain Limited (also known as HashKey), two of the licensed exchanges in Hong Kong.

To protect investors and uphold the integrity of the crypto trading environment, the SFC encourages the public to consult its official register.

This includes a list of licensed persons and registered institutions, along with a specific directory for licensed virtual asset trading platforms.

By doing so, investors can access accurate information on licensed entities and their official websites, ensuring they engage with legitimate platforms.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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