Hong Kong’s Securities and Futures Commission (SFC) flagged 33 additional suspicious websites masquerading as HashKey, one of the city’s licensed cryptocurrency trading platforms, taking the total number of identified impersonators to 45.
HashKey, the second exchange to obtain a crypto license from the SFC in November 2022, reported the suspicious links. The exchange said that the fraudulent websites slightly altered official links associated with the exchange to mislead its clients.
“HashKey Exchange declares that it has no connection with the aforementioned fraudulent websites,” it said in a notice to its clients.
The SFC has been tracking suspicious crypto platforms ranging from fraudulent websites and impersonators to unlicensed exchanges since November 2021. As of Jan. 29, the regulator has identified at least 91 suspicious trading platforms and links.
Related: HashKey secures VASP license in Ireland under MiCA regulations
The most notable entity flagged by the SEC is JPEX, whose downfall has been likened to an “FTX moment” for Hong Kong after it was accused of a 1.3 billion Hong Kong dollar (around $166 million) fraud affecting 2,000 investors. The scandal erupted when the SFC publicly warned that JPEX was operating without a license despite the platform claiming otherwise.
Until the final quarter of 2024, HashKey and OSL were the only two crypto trading platforms officially licensed by the SEC.
The SFC began ramping up its permit approvals in 2024, most recently raising its number to nine by adding YAX and PantherTrade to the city’s formal roster on Jan. 27, marking the first batch of license approvals in 2025.
Related: Hong Kong SFC grants first crypto licenses of 2025
Hong Kong has expressed its ambition to establish itself as a regional digital assets hub, rivaling Singapore; the city-state has granted at least 30 full licenses to cryptocurrency players.
While Singapore has the edge over Hong Kong in the number of licenses, Hong Kong took the first stab at spot Bitcoin and Ether exchange-traded funds (ETFs). Singapore Exchange CEO Loh Boon Chye has said that the Lion City’s market isn’t quite ready for such financial instruments .
Magazine: ‘Hong Kong’s FTX’ victims win lawsuit, bankers bash stablecoins: Asia Express