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 said the Hong Kong Police Drive had blocked entry to the web sites of BitCuped and Hong Kong Digital Analysis Institute — often known as HongKongDAO — claiming customers might be fooled into making illegitimate investments. The regulator additionally issued cease-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 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 keeping with the SFC, the “deceptive” data associated to HongKongDAO might encourage people to consider its companies have been “correctly licensed and legit” and put money into the HKD token. The securities regulatory added that Cha and Aguzin have been executives with the Inventory Alternate of Hong Kong relatively than related to BitCuped.

In October, the SFC announced it planned 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 virtual asset service provider license with the SFC.

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