The Securities and Futures Commission of Hong Kong (SFC) has cautioned the public about potential fraudulent activities associated with two cryptocurrency entities, namely Hong Kong Digital Institute and BitCuped. Hong Kong authorities have taken action by blocking the websites of BitCuped and the Hong Kong Digital Academy, also known as HongKongDAO. The SFC's notice on December 6 highlighted concerns about users being lured into making unlawful investments through these platforms. In response, the regulator has sent cease-and-desist letters to the operators of these websites.
According to the SFC's statement, there are suspicions that HongKongDAO might be spreading false and misleading information about its business operations via online channels. The notice emphasized that misleading details associated with HongKongDAO might mislead individuals into believing that the services provided by the platform are licensed and legitimate, thus potentially prompting investments in Hong Kong dollar tokens. Additionally, the SFC pointed out that BitCuped's website falsely indicated that 'Laura Cha' and 'Nicolas Aguzin' were the Chairman and CEO, respectively, though these individuals have no affiliation with BitCuped. Cha and Aguzin are executives at the Hong Kong Stock Exchange and are not associated with BitCuped, as clarified by the SFC.
In response to market changes and industry feedback, the Securities and Futures Commission announced plans in October to revise its policies concerning the sale of digital currencies and the prerequisites for such sales. The forthcoming regulations mandate that from June 2024 onwards, cryptocurrency exchanges operating in Hong Kong must possess a virtual asset service provider license issued by the Securities and Futures Commission.
