Hong Kong’s The Securities and Futures Commission (SFC) has warned the public about suspicious websites posing as the city-state’s two licensed crypto exchanges, according to a March 4 notice.
According to the notice, several sites are imitating the image and brand name of both Hash Blockchain Limited and OSL Digital Securities Limited attempt to mislead users.
This fraudulent act misled several investors, who reported it to the regulator. Some users complained about their inability to withdraw funds, while others were forced to pay high fees before they could unlock their funds.
Therefore, SFC warned investors to do their due diligence before using a crypto exchange, adding that Hong Kong police have blocked the offending websites.
Furthermore, the financial regulator warned that there may be other deceptive platforms masquerading as licensed entities. Therefore, investors are strongly advised to verify the registration status of the institutions they work with.
“The SFC once again reminds the public that online investment scams can involve any type of asset and are perpetrated through multiple channels, including social media and instant messaging apps. Investors should remain vigilant and verify the legitimacy of a virtual asset trading platform before executing any trades,” it added.
Meanwhile, this is not the first time that Hong Kong authorities have warned about a website masquerading as a crypto platform. In February, the regulator publicly warned against an entity posing as crypto exchange MEXC Global that lured unsuspecting victims into a crypto investment scam.
Hong Kong Crypto Licenses
Hong Kong has recently become a favorite destination for crypto exchanges due to its regulatory clarity and strategic position in the Asian market.
During the recent application for a crypto exchange license, the SFC received applications from several major grants including Crypto.com, OKX, HTX and ByBit will operate legally within the region.