Key Takeaways
- Exchange stated that these fraudulent firms used slightly modified versions of its official website address to mislead users
- HashKey stated that it has no association with these websites and urged users to verify website details carefully before engaging in transactions.
Hong Kong’s Securities and Futures Commission (SFC) has identified 33 additional fraudulent websites impersonating HashKey, a licensed crypto trading platform. This brings the total number of flagged impersonators to 45. The latest discovery is part of the SFC’s broader efforts to monitor and regulate digital asset related fraud in the region.
HashKey, one of the few crypto exchanges officially licensed in Hong Kong, reported the suspicious websites. The exchange stated that these fraudulent platforms used slightly modified versions of its official website address to mislead users into believing they were interacting with HashKey’s legitimate services.
In a notice to its clients, HashKey emphasized that it has no association with these websites and urged users to verify website details carefully before engaging in transactions.
The SFC has been actively monitoring and addressing unlicensed crypto exchanges, fraudulent platforms, and impersonation scams since November 2021. As of January 29, the regulatory body has flagged at least 91 trading platforms and links that it considers suspicious. The agency has maintained a public warning list to inform investors about high-risk and unregulated crypto-related entities.
One of the most significant fraud cases flagged by the SFC is JPEX, a crypto exchange accused of operating without a license and defrauding investors of approximately 1.3 billion Hong Kong dollars (around $166 million). The case, which has drawn comparisons to the collapse of FTX, affected nearly 2,000 investors.
The SFC had previously warned that JPEX was not authorized to operate in Hong Kong, despite the platform’s claims of legitimacy. This warning led to heightened scrutiny of the exchange and subsequent legal actions against its operators.
Until late 2024, only two crypto exchanges—HashKey and OSL—were officially licensed by the SFC to operate in Hong Kong. However, in a move to expand the regulated trading environment, the SFC has recently granted licenses to YAX and PantherTrade.
These approvals, issued on January 27, bring the total number of licensed trading platforms in Hong Kong to nine. The SFC continues to advise investors to exercise caution when dealing with crypto trading platforms.
It emphasizes the importance of verifying whether a platform is officially licensed and included in the regulator’s list of authorized exchanges. The agency has reiterated that investors should be wary of misleading websites and fraudulent actors in the crypto space.
Hong Kong has been positioning itself as a competitive hub for digital assets.Last year, Hong Kong became the first place in Asia to launch spot bitcoin and ether exchange traded funds (ETFs)
