‘We’re watching you,’ regulator warns Hong Kong cryptocurrency exchanges
SFC’s warning letter to digital-currency platforms and ICO issuers follows complaints from investors of alleged fraud and market manipulation
Hong Kong’s cryptocurrency exchanges have been warned that regulators are watching them closely after investors complained of practices ranging from market manipulation to misappropriation of assets.
The Securities and Futures Commission said it has sent letters to all seven digital currency platforms as well as firms attempting to raise funds through initial coin offerings (ICOs), warning that they are ready to pass cases of potential fraud to the police for investigation.
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“Some complainants claimed that cryptocurrency exchanges had misappropriated their assets or manipulated the market, or that technical breakdowns of the exchanges’ platforms had caused them significant losses. Several complaints against ICO issuers alleged unlicensed or fraudulent activities,” said the SFC in a statement.
Ashley Alder, the SFC’s chief executive, added: “We will continue to police the market and enforce when necessary.”
Several complaints against ICO issuers alleged unlicensed or fraudulent activities
Investors had also complained to the SFC that they were unable to withdraw their funds – either in the form of fiat currencies or cryptocurrencies – from their accounts held with digital exchanges, the SFC statement said.