The Securities and Futures Commission (SFC) of Hong Kong has blocked access to the websites of two cryptocurrency entities, Hong Kong Digital Research Institute (known as HongKongDAO) and BitCuped, on suspicions of fraudulent activities.
This action, announced on December 6, is a collaborative effort with the Hong Kong Police Force to protect potential investors from being lured into illegitimate investments.
Allegations of Misleading Information
The SFC’s notice raises serious concerns about these entities disseminating false and misleading information. Specifically, HongKongDAO is accused of portraying its business deceptively online, while BitCuped is alleged to have falsely claimed its leadership.
BitCuped reportedly named Laura Cha and Nicolas Aguzin, prominent executives with the Stock Exchange of Hong Kong, as its top officials without their consent or affiliation.
This deceptive information could mislead individuals into believing these entities’ legitimacy and proper licensing, potentially spurring unwary investments in HongKongDAO’s HKD token.
This crackdown comes amid Hong Kong’s broader efforts to strengthen its regulatory framework in the digital currency space. In October, the SFC announced plans to revise its policies on digital currency sales and requirements, reflecting the rapidly evolving market and industry feedback.
Starting in June 2024, cryptocurrency exchanges in Hong Kong will be required to obtain a virtual asset service provider license from the SFC. This marks a significant step towards more stringent regulation and oversight in the cryptocurrency sector.