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Hong Kong Securities Regulator Warns Against Crypto Platform HKCEXP

The Securities and Futures Commission of Hong Kong (SFC) has issued a warning regarding a suspicious trading platform named HKCEXP.

HKCEXP has been accused of deceiving investors by falsely claiming affiliation with the regulatory body, despite lacking registration with the SFC.

This cautionary alert comes amidst the SFC’s recent announcement mandating cryptocurrency exchanges operating in Hong Kong to apply for a mandatory operational license by February 29 or cease operations by May 31.

In response to this directive, the SFC received applications from 22 crypto trading platforms, including four that had previously applied under a voluntary regime.

However, despite regulatory efforts, fraudulent entities such as HKCEXP continue to pose a challenge in Hong Kong’s crypto landscape. HKCEXP misleadingly presents itself as an “SFC-registered business” while allegedly providing a false address in Hong Kong and imposing significant withdrawal fees, as reported by one victim to the SFC.

To address such fraudulent activities and bolster investor protection, the SFC plans to maintain and publicly disclose a list of crypto platforms granted operational licenses.

Exchanges that failed to meet the application deadline are now restricted in their operational capacity and barred from conducting marketing activities within the region.

The issue of impersonation extends beyond HKCEXP, as the SFC has recently uncovered several counterfeit websites mimicking reputable local cryptocurrency exchanges.

These fake sites aimed to deceive investors by replicating the domains of licensed exchanges such as OSL Digital Securities and Hash Blockchain Limited (also known as HashKey).

To safeguard investors and uphold the integrity of the crypto trading environment, the SFC advises the public to consult its official register.

This register includes comprehensive listings of licensed persons, registered institutions, and a specific directory for licensed virtual asset trading platforms.

By referring to these official sources, investors can access accurate information on licensed entities and their legitimate websites, thereby mitigating the risk of falling victim to fraudulent schemes.

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