Hong Kong regulator blocks access to two crypto entities, deeming them a scam

Hong Kong regulator blocks access to two crypto entities

The Securities and Futures Commission (SFC) in Hong Kong has issued a warning aimed at protecting investors from potential scams in the cryptocurrency world. Two entities – the Hong Kong Digital Research Institute and BitCuped – have been at the center of suspicion, prompting the regulator to take concrete action.

Offensive against crypto scammers

Reports released on December 6 indicate that the Hong Kong SFC has initiated action to block access to the websites of the two crypto companies. Local police were involved in the procedures. Summonses have also been issued to the operators of the sites. The SFC suspects that these entities may be spreading disinformation online, deceiving potential investors.

One of the warnings issued by the SFC focuses on the Hong Kong Digital Research Institute, also known as HongKongDAO. The institute is suspected of providing false information that could lead people to invest in HKD token, while suggesting that their services are legitimate and properly licensed. The regulator has made it clear that those named as being involved in the company’s activities have no connection to it.

Special licenses a filter against scams

Scams involving cryptocurrency entities are no exception. The SFC’s recent actions are part of a broader strategy the body is taking against the rapidly growing cryptocurrency market. In October, it announced plans to update rules on the sale of digital currencies and requirements for Hong Kong exchanges. Starting in June 2024, these exchanges will be required to be licensed by the SFC as virtual asset service providers.

It is important for investors to exercise caution and check the authenticity of information, especially for new projects or unknown players in the crypto industry. As the SFC notes, misleading information can lead to illegal investments and put those invested at risk of losing their funds.

Cryptocurrency market in the face of global change

With the cryptocurrency market evolving rapidly, regulation is becoming crucial to ensure the safety of investors. Warnings such as the one issued by the SFC are a step toward protecting against fraud and unfair practices. More and more similar regulations are popping up around the world. One of the most high-profile is MiCA, which will soon be in effect in the European Union. It will require exchanges to provide high-quality solutions, in return giving them special licenses to operate.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this article

More news


XRP outperforms Bitcoin and Ethereum

In the past week, XRP decisively outperformed its main rivals, Bitcoin (BTC) and Ethereum (ETH), in terms of capital flows. Moreover, it recorded an impressive $2.7 million…

Solana and Avalanche on the eye of investment funds

Two alternative coins, Solana (SOL) and Avalanche (AVAX), are gaining increasing interest and are successively attracting the attention of investment funds. Although bitcoin (BTC) remains the main…
All articles loaded
No more articles to load


Cryptocurrency wallets

Cryptocurrency wallets

We talked about security when trading crypto assets in an article titled “Online security“. We also mentioned how important it…
hardware wallets

Cryptocurrency hardware wallets

From the article titled “Cryptocurrency wallets” you learned about the different types of wallets. They were briefly characterized there. Let’s…
Where to buy cryptocurrency brokers

Which cryptocurrency Brokers to use

In the article “Where to Buy Cryptocurrencies (Exchanges)“, we introduced you to which exchange platforms you can purchase cryptocurrencies on.…
Trading cryptocurrencies

Trading cryptocurrency

In the cryptocurrency market, you face many opportunities to invest in cryptocurrency or buy or sell cryptocurrency. If you want…
All articles loaded
No more articles to load


All articles loaded
No more articles to load

Latest news

All articles loaded
No more articles to load