Hong Kong regulator blocks access to two crypto entities, warning of fraud

The Securities and Futures Fee (SFC) of Hong Kong has issued a warning associated to suspected fraud involving crypto entities Hong Kong Digital Analysis Institute and BitCuped.

In a Dec. 6 discover, the SFC mentioned the Hong Kong Police Pressure had blocked entry to the web sites of BitCuped and Hong Kong Digital Analysis Institute — also called HongKongDAO — claiming customers could possibly be fooled into making illegitimate investments. The regulator additionally issued stop and desist letters to the companies’ web site operators.

“The SFC suspects HongKongDAO could also be disseminating false and deceptive details about itself and its enterprise by means of on-line channels,” mentioned the Dec. 6 discover. “The SFC notes that BitCuped claims on its web site that ‘Laura Cha’ and ‘Nicolas Aguzin’ function its Chairman and Chief Govt Officer respectively, when in truth none of them has any affiliations with BitCuped.”

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In line with the SFC, the “deceptive” info associated to HongKongDAO may encourage people to consider its companies have been “correctly licensed and legit” and spend money on the HKD token. The securities regulatory added that Cha and Aguzin have been executives with the Inventory Trade of Hong Kong reasonably than linked to BitCuped.

In October, the SFC introduced it deliberate to replace its insurance policies on digital foreign money gross sales and necessities, citing market developments and business suggestions. Beginning in June 2024, exchanges working inside Hong Kong should have a digital asset service supplier license with the SFC.

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