The director of enforcement of decisions of the Securities and Futures Commission (SFC), Damon Cheng Tak-ka, said that the basis for blocking local providers was suspicions of disseminating false information about their own business.
The HongKongDAO service widely advertised and promoted its own digital token HKD on the Hong Kong cryptocurrency market through the HongKongDAO and BitCuped online platforms. The project team, the regulator believes, misled investors by reporting that its activities were in full compliance with Hong Kong laws and SFC requirements.
Damon Cheng claims that HongKongDAO and BitCuped web resources misrepresented to crypto investors that the HKD team was led by the chairman and CEO of Hong Kong Exchanges and Clearing (HKEX).
“The SFC has contacted Hong Kong ISPs through law enforcement to request that the SFC and BitCuped websites be blocked. The regulator also sent a letter to trading platforms demanding that they immediately stop trading in HKD tokens issued by HongKongDAO,” Damon Cheng announced.
The SFC representative did not disclose the number of victims or the extent of monetary damages associated with the distribution of HKD tokens. However, according to indirect data based on the number of active users of HongKongDAO chat groups, the number of victims may exceed 11,000 people.
In early December, the SFC announced that cryptocurrency companies would be given a one-year “grace period” during which they must obtain a license to operate in the region.
Source: Bits
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