Hong Kong’s Securities and Futures Commission (SFC) has restricted access to two cryptocurrency websites, according to a December 6 notice.
In that notice, the securities regulator said it had taken steps to block access to the websites of HongKongDAO (also known as Hong Kong Digital Research Institute) and BitCuped. Despite the regulator’s actions, both websites were accessible outside Hong Kong as of 8:00 PM UTC on December 6.
The regulator added that it has issued a cease and desist order to the relevant website operators, requiring each site to stop offering the HKD token, a cryptocurrency whose offering is considered illegal due to the lack of necessary permissions.
The SFC also detailed the misdeeds of each company. In addition to highlighting HongKongDAO’s offering of the HKD token, the SFC said HongKongDAO spread false and misleading information about itself. It noted that one article alleged that HongKongDAO has applied for and obtained certain licenses and is currently bidding for another license allegedly related to stablecoin regulation. The regulator denied these claims.
In addition, BitCuped falsely claimed that two individuals act as executives of the company, while neither actually has a relationship with it. Those executives are instead associated with Hong Kong’s major exchange, HKEX, which has acknowledged that BitCuped and other companies are claiming false ties to the exchange.
Hong Kong is cracking down on crypto fraud
Hong Kong has taken high-profile actions against other crypto companies in recent months. Notably, the SFC began investigating a crypto exchange called Hounax around November 27. The regulator was criticized for coming too late with a warning as customers reportedly lost $15.4 million worth of crypto.
The SFC is also involved in an ongoing investigation into JPEX, which allegedly caused customers to lose approximately $200 million worth of crypto through fraud. While it does not appear that the case has been fully solved, reports from November 26 indicate that police have made 66 arrests in connection with JPEX to date.
Hong Kong postal regulator blocks crypto websites over illegal token offerings and false claims first appeared on CryptoSlate.