Hong Kong's SFC warns against impersonators of OSL Digital, HSKEX

2024-03-03 23:45:55

The Securities and Futures Commission (SFC) in Hong Kong has warned the public about fraudulent websites impersonating the local licensed crypto exchanges.

In a public warning on Mar. 4, the SFC cautioned the public about suspicious websites impersonating two licensed crypto trading platforms: HSKEX, which falsely represents Hash Blockchain Limited, and another one, mimicking OSL Digital Securities Limited.

The fraudulent websites were flagged on the SFC’s Suspicious Virtual Asset Trading Platforms List after reports surfaced regarding difficulties in withdrawing funds from the illegitimate platforms. Victims also reported encountering high fees and taxes when attempting to access their funds.

In response to the SFC’s notification, the Hong Kong Police Force has taken measures to block access to the identified fraudulent websites. Investors are urged to exercise caution and thoroughly verify the legitimacy of any virtual asset trading platform before engaging in transactions.

The latest warning comes amid a surge in virtual asset-related crimes in Hong Kong, which have nearly tripled since 2021. However, specific statistics regarding arrests and prosecutions vary based on individual cases. For instance, in the JPEX case, authorities have arrested 70 individuals, with no charges filed as of yet, crypto.news earlier reported.

So far, the SFC has only granted licenses to two exchanges in Hong Kong: OSL and HashKey Exchange, awarded in December 2020 and November 2022, respectively. Additionally, 22 trading platforms have filed applications seeking licenses from the local regulator to operate in the region.

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