SFC cautions against fake websites mimicking HSKEX and OSL Digital Securities Limited, reports of fund withdrawal issues and high fees. Hong Kong Police block access to identified fraudulent sites.
The Hong Kong Securities and Futures Commission (SFC) has issued a public advisory cautioning against deceptive websites masquerading as licensed cryptocurrency exchanges in the region.
In an official announcement on March 4, the SFC alerted the public to be wary of dubious online platforms impersonating two licensed crypto trading entities: HSKEX, falsely claiming association with Hash Blockchain Limited, and another one mimicking OSL Digital Securities Limited.
These fraudulent websites have been red-flagged on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List following reports of users facing difficulties in withdrawing funds from these unauthorized platforms. Victims have also reported encountering exorbitant fees and taxes when attempting to access their funds.
Responding to the SFC's alert, the Hong Kong Police Force has taken decisive action to block access to the identified fraudulent websites. Investors are strongly advised to exercise caution and conduct thorough due diligence to validate the legitimacy of any virtual asset trading platform before engaging in transactions.
This latest warning emerges amidst a significant rise in virtual asset-related crimes in Hong Kong, with reported incidents nearly tripling since 2021. However, specific statistics on arrests and prosecutions vary across individual cases. For example, in the JPEX case, authorities have apprehended 70 individuals, though as of the latest report, no charges have been filed, as per previous coverage by crypto.news.
As of now, the SFC has granted licenses to only two exchanges in Hong Kong: OSL and HashKey Exchange, awarded in December 2020 and November 2022, respectively. Additionally, there are currently 22 trading platforms that have submitted applications seeking licenses from the local regulator to operate within the region.