Li Jiachao calls on citizens to strengthen investor education when trading on licensed platforms
Hong Kong Chief Executive Carrie Lam attended a meeting with the media before the meeting today and expressed concern about the case. The Securities and Futures Commission and the police will explain the incident this afternoon. When asked whether the current relevant regulations are insufficient, Carrie Lam responded that the government needs an effective regulatory system to protect investors. She believes that this incident shows that citizens must invest in regulated and licensed platforms and emphasizes that the current licensing system can ensure that platforms provide sufficient protection for investors, including distinguishing between funds held by platforms for investors and operating funds of the company, and ensuring that the company's debt capacity is regulated and restricted.
Hong Kong Securities and Futures Commission: Fraud on virtual asset trading platforms does not mean there are major flaws in supervision
Hong Kong Securities and Futures Commission (SFC) has included the virtual asset trading platform HOUNAX in the list of "unlicensed companies and suspicious websites" in early November. The CEO of SFC, Ashley Alder, said that the SFC received the first complaint at the end of September and started an investigation in October. Due to the time required for the investigation, it was included in the suspicious list on November 1. The SFC stated that it has received a total of 18 complaints about HOUNAX, involving amounts ranging from HKD 12,000 to HKD 10 million.
Hong Kong to Keep One-Year Grace Period for Crypto Exchanges Despite Recent Scandals
Despite recent cryptocurrency scandals in Hong Kong, the one-year grace period for unregistered exchanges will remain in place for the time being. Julia Leung, Hong Kong's Under Secretary for Financial Services and the Treasury, stated that even if the grace period ends, fraud will still occur. Crypto exchanges operating in Hong Kong must apply for a Virtual Asset Service Provider license by June 2024 or face deregistration, but unregistered exchanges can still operate during the transition period. Recent scandals include the collapse of unlicensed exchange JPEX and the scamming of 131 residents by unlicensed exchange Hounax.
Hong Kong Securities and Futures Commission: Hong Kong VAEXC Limited has applied for a virtual asset trading platform license
On November 27th, the Securities and Futures Commission of Hong Kong updated the list of virtual asset trading platform applicants. The latest information shows that Hong Kong VAEXC Limited submitted a virtual asset trading platform license application on November 25th. The company does not have a Chinese name, and its virtual asset trading platform is named VAEX. So far, a total of 8 companies have formally submitted virtual asset trading platform license applications to the Hong Kong Securities and Futures Commission, and one application from AMMBR (HK) LIMITED has been withdrawn.
Malaysian regulators are reviewing HKD.com’s digital asset operations license application
On November 27th, HKD.com, a Hong Kong digital asset exchange, announced that The Audit Oversight Board in Malaysia is reviewing their application for a digital asset operating license and is expected to approve it within the next three months.
Hong Kong Securities and Futures Commission: HOUNAX has received 15 complaints about suspected fraud so far
Virtual asset trading platform HOUNAX is suspected of fraud. The Hong Kong Securities and Futures Commission stated that it has received 15 related complaints so far, and the victims have also reported to the police.
Hong Kong media: Futu Hong Kong users’ withdrawals are blocked and they are temporarily unable to withdraw funds
The internet brokerage firm Futu has disclosed that its Hong Kong users are currently unable to withdraw funds. Some users have reported that withdrawal instructions have been pending for over 6 hours, with the progress still showing as "processing" and leaving messages stating "big problems". Futu staff have also suggested that users do not withdraw funds temporarily, and that if they choose to withdraw after 7 days, they will receive 1 share of Alibaba stock as a gift.
Hong Kong financial technology company K Cash plans to raise 281.8 million yuan and will join the blockchain platform Riverchain
According to a report by Hong Kong 01, Hong Kong fintech company K Cash announced plans to list on the Hong Kong Stock Exchange's main board. They plan to raise up to HKD 281.8 million by selling 125 million shares on November 27. K Cash will become the first company to list on the new stock settlement platform (FINI) of the Hong Kong Stock Exchange.In addition, K Cash's Chairman and CEO, Li Gentai, revealed that K Cash has reached a cooperation agreement with River Square, a wholly-owned subsidiary of New World Development, to join its blockchain platform, Riverchain, and will be launched before the end of this year.
Man lost HK$2 million in virtual currency trading scam
At 3:53 pm on Thursday (23rd), Hong Kong law enforcement received a report from a man surnamed Zhang (36 years old), stating that he had met a suspicious man on social media who claimed to be a cryptocurrency investor. The suspect provided his electronic wallet account information to the man, and claimed that a buyer surnamed Liao (35 years old) would represent him in the transaction to purchase cryptocurrency through Zhang. The three parties went to a shop at No. 56 Junye Street, Kwun Tong, and first conducted a small amount of cryptocurrency transaction. After the man transferred the cryptocurrency to the suspect's electronic wallet, the suspect then transferred the money to Liao's electronic wallet to create the illusion of a reliable transaction. Afterwards, Liao handed over about HKD 2 million in cash to the man to buy cryptocurrency, but after the man deposited the cryptocurrency into the suspect's electronic wallet, he disappeared and Liao was unable to retrieve the funds. In the case, Liao lost about HKD 2 million, and Zhang did not receive a commission of about HKD 3,000. After investigation, law enforcement classified the case as "obtaining property by deception" and no one has been arrested yet. Law enforcement calls on citizens to use reliable intermediary platforms, understand the background and credibility of the trading partners, and use double verification on the trading platform before conducting cryptocurrency transactions.
Hong Kong Police: The HOUNAX virtual investment scam has been reported by 131 people, involving HK$110 million
Hong Kong police recently discovered that scammers were posing as investment experts and using high returns to attract citizens to invest in a virtual asset trading platform, ultimately unable to retrieve their funds. The police stated that the company involved is called HOUNAX and they have received 131 reports from victims, involving over HKD 110 million. Each case involves a scam amount ranging from HKD 12,000 to HKD 4 million.
