Hong Kong Securities and Futures Commission suspects BitForex fraud

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 move is part of ongoing regulatory efforts in the region’s cryptocurrency industry, which has already implemented regulatory deregulation and enforcement measures to combat fraudulent activity.

Working hard to protect investors and deter fraudulent activity

BitForex claims to be headquartered in Hong Kong, however it operates without the necessary licenses from the Securities and Futures Commission, which violates regulatory standards. The lack of a license raises doubts about the platform’s legality and the safety of users’ investments.

This issue plays an important role in the exchange’s broader narrative. Hong Kong aims to establish itself as a global center for virtual assets, actively promote retail cryptocurrency trading, and consider submitting applications for spot cryptocurrency exchange-traded funds (ETFs).

Japanese regulators last year noted that BitForex was operating without proper registration, fueling concerns about its compliance. It’s worth noting that despite regulatory challenges, BitForex is still licensed to operate in Canada.

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 access, after victims reported being unable to access their accounts or withdraw funds after the website was shut down. their assets.

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