The Securities and Futures Commission decided to temporarily close the Bitforex exchange.
Hong Kong’s Securities and Futures Commission (SFC) has issued a public warning to cryptocurrency exchange BitForex over concerns about alleged fraud.
Monday’s announcement of the warning comes after BitForex unexpectedly went offline on February 23, resulting in the withdrawal of $57 million from the exchange’s hot wallets.
The SEC’s action is part of ongoing regulatory efforts to regulate the region’s cryptocurrency industry, which has adopted deregulatory and enforcement measures targeting fraudulent activity.
Working to protect investors and deter fraudulent activity
BitForex claims to be headquartered in Hong Kong, but has been operating without the necessary licenses from the Securities and Futures Commission, violating regulatory standards. The lack of licensing has raised questions about the legality of the platform and the safety of its users’ investments.
This issue is part of a larger narrative affecting the exchange. Hong Kong aims to position itself as a global hub for virtual assets, welcoming retail cryptocurrency trading and considering applying for spot cryptocurrency exchange-traded funds (ETFs).
Last year, Japanese regulators also cited BitForex for operating without proper registration, fueling concerns about its operations. It is worth noting that despite these regulatory challenges, BitForex is still licensed to operate in Canada.
Following victims reporting being unable to access their accounts or withdraw funds after the website was shut down, the SFC has asked the Hong Kong Police Force to block access to BitForex’s website links and social media pages to prevent further potential fraud and protect investors from losing their Asset access rights. #香港证监会 #交易所欺诈