The Securities and Futures Commission (SFC) in Hong Kong has issued a warning to the public regarding fraudulent websites posing as licensed crypto exchanges in the region.

In a public notice released on Mar. 4, the SFC specifically highlighted two suspicious websites impersonating licensed crypto trading platforms in Hong Kong. One of the platforms, HSKEX, falsely claims to be associated with Hash Blockchain Limited, while the other platform mimics OSL Digital Securities Limited.

These fraudulent websites have been included in the SFC’s Suspicious Virtual Asset Trading Platforms Alert List due to reports of users facing difficulties in withdrawing their funds from these illegitimate platforms. Users have also reported encountering high fees and taxes when attempting to access their funds.

Following the SFC’s alert, the Hong Kong Police Force has taken action to block access to these fraudulent websites. Investors are advised to be cautious and conduct thorough due diligence to verify the legitimacy of any virtual asset trading platform before engaging in transactions.

Virtual Asset-Related Crimes on the Rise in Hong Kong

The recent warning from the SFC comes amidst a significant increase in virtual asset-related crimes in Hong Kong, which have nearly tripled since 2021. While specific statistics on arrests and prosecutions may vary, recent cases such as the JPEX incident have resulted in the arrest of 70 individuals, with no charges filed as of yet, as reported by crypto.news.

Currently, the SFC has only granted licenses to two crypto exchanges in Hong Kong: OSL and HashKey Exchange, awarded in December 2020 and November 2022, respectively. Additionally, a total of 22 trading platforms have submitted applications seeking licenses from the local regulator to operate within the region.

For more updates on cryptocurrency news and regulatory developments, continue exploring the latest articles on Global Crypto News.

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