The Hong Kong Securities and Futures Commission (SFC) has alerted investors about three entities suspected of fraud involving virtual assets or operating without a license. This warning comes as Hong Kong strives to establish itself as a crypto hub to foster development in the crypto sector.

SFC Flags Tokencan, VBIT, HKD.com as Scams

On June 28, the SFC issued a fraud alert for Tokencan, describing it as a supposed virtual asset trading platform (VATP). The Commission reported that Tokencan misled investors via social media to its website, claiming to offer crypto trading services. Investors faced difficulties withdrawing funds and were eventually denied account access. Additionally, Tokencan provided false information in its registration with the Commission.

The SFC also accused VBIT Exchange of presenting itself as a VATP without the required license, falsely claiming registration with multiple local authorities. Furthermore, the SFC cautioned against HKD.com Corporation, which uses a similar name and logo to another VATP but lacks any affiliations. Like Tokencan, HKD.com investors reported withdrawal issues.

The SFC assured investors that enforcement actions have been taken against these entities, with police shutting down related websites and social media channels. Investors are advised to only engage with licensed trading services. The Commission emphasized the importance of obtaining a license before operating, as mandated by Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

Hong Kong’s Crypto Hub Aspirations

As part of its efforts to become a global crypto hub, Hong Kong has approved spot Ethereum and Bitcoin exchange-traded funds (ETFs) and conducted government-sponsored research on decentralized finance and the Metaverse. This research aims to advance the city’s position in these crucial areas of the crypto industry.