Hong Kong SFC Identifies and Blocks Fake Crypto Exchange Websites

The Securities and Futures Commission (SFC) of Hong Kong has taken action against fraudulent websites posing as reputable local cryptocurrency exchanges.

SFC Issues Warning on Impersonation of Licensed Crypto Trading Platforms in Hong Kong

The SFC issued an official warning on March 4, alerting the public to multiple suspicious websites impersonating licensed crypto trading platforms. These fake domains purported to represent established exchanges in Hong Kong, including OSL Digital Securities and Hash Blockchain Limited (HashKey).

Hong Kong Authorities Block Six Deceptive Websites Impersonating Licensed Crypto Trading Platforms

A total of six websites were identified and blocked by the SFC, namely hskexpro.com, hskex.com, hskexs.com, hskexit.com, oslexu.com, and oslint.com. Concerns were raised over reported difficulties in fund withdrawals and the imposition of high fees and commissions.

In response to the SFC's directive, the Hong Kong Police Force intervened to restrict access to the deceptive websites.

SFC Expands Crypto Alert List: Warns Against Counterfeit Platforms Including MEXC Impersonators

These websites join a list of flagged entities on the SFC's official crypto alert list, which includes counterfeit platforms such as MEXC. Previously, the SFC had blacklisted eight domains masquerading as MEXC on February 9.

Fake website alert list by Hong Kong SFC. Source: SFC

The SFC emphasized the importance of verifying trading platforms through its public register of licensed entities and registered institutions. Investors were urged to exercise caution and refrain from engaging in transactions until confirming the legitimacy of the counterparties involved.

Security Expert Advises Caution Amid Rising Crypto Frauds; SFC's Actions Coincide with Licensing Deadline

Bartosz Barwikowski, a security expert at Hacken, highlighted the challenge of distinguishing between genuine and fake websites, particularly for first-time users. He recommended utilizing mobile apps over websites and relying on trusted third-party sources for verification.

The SFC's actions coincide with the conclusion of the latest licensing cycle for crypto exchanges on February 29. Exchanges that failed to submit applications by this deadline face expulsion from the region within three months.

Beware of Counterfeit Crypto Exchange Websites: Importance of Vigilance and Verification for Investor Safety

The discovery of counterfeit crypto exchange websites underscores the need for heightened vigilance within the digital asset ecosystem. Investors are reminded to verify the authenticity of platforms and exercise caution to mitigate the risks associated with fraudulent schemes.