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Hong Kong regulator blocks entry to 2 crypto entities, warning of fraud

The Securities and Futures Fee (SFC) of Hong Kong has issued a warning associated to suspected fraud involving crypto entities Hong Kong Digital Analysis Institute and BitCuped.

In a Dec. 6 discover, the SFC said the Hong Kong Police Drive had blocked entry to the web sites of BitCuped and Hong Kong Digital Analysis Institute — also referred to as HongKongDAO — claiming customers could possibly be fooled into making illegitimate investments. The regulator additionally issued stop and desist letters to the corporations’ web site operators.

“The SFC suspects HongKongDAO could also be disseminating false and deceptive details about itself and its enterprise via on-line channels,” mentioned the Dec. 6 discover. “The SFC notes that BitCuped claims on its web site that ‘Laura Cha’ and ‘Nicolas Aguzin’ function its Chairman and Chief Govt Officer respectively, when the truth is none of them has any affiliations with BitCuped.”

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In line with the SFC, the “deceptive” data associated to HongKongDAO may encourage people to imagine its providers had been “correctly licensed and legit” and spend money on the HKD token. The securities regulatory added that Cha and Aguzin had been executives with the Inventory Change of Hong Kong moderately than linked to BitCuped.

In October, the SFC announced it planned to replace its insurance policies on digital foreign money gross sales and necessities, citing market developments and trade suggestions. Beginning in June 2024, exchanges working inside Hong Kong should have a virtual asset service provider license with the SFC.

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