Emily Walker
In a recent update regarding the security of crypto assets, the Securities and Futures Commission (SFC) of Hong Kong has identified 33 new fraudulent websites that are masquerading as affiliated with HashKey, a licensed cryptocurrency trading platform in the area.
This declaration raises the total number of reported HashKey impersonators to 45. The SFC noted that these scams employ slight modifications to official HashKey links in an effort to trick potential investors.
HashKey’s Response and Growing Concerns in Hong Kong’s Crypto Sector
HashKey, being one of the few SFC-approved crypto exchanges, reacted swiftly to disassociate itself from these counterfeit platforms. In a statement, the exchange stressed that there is no affiliation with these scam sites and urged investors to verify website links and stay vigilant. The statement included the following:
Fraudulent websites may appear under different domain names or with minor variations of the official HashKey Exchange address www.hashkey.com by incorporating a mix of letters, numbers, or symbols. HashKey Exchange declares that it has no connection with these fraudulent sites. These websites are not associated with HashKey Exchange or its affiliates in any manner, and therefore, we will not accept responsibility for any issues related to them.
In the last three years, the SFC has been actively tracking the cryptocurrency landscape in Hong Kong, having flagged at least 91 suspicious trading platforms up to now.
This problem is indicative of broader regulatory hurdles faced by authorities as Hong Kong’s crypto market evolves. It mirrors the recent fallout from the JPEX incident, where a digital currency platform allegedly operated without a license, defrauding around 2,000 investors of approximately 1.3 billion Hong Kong dollars (around $166 million).
The aftermath of this scandal underscores the critical need for rigorous oversight and decisive action against unlicensed operators.
New Operational Licenses Granted in Hong Kong
In parallel, Hong Kong is progressing in the development of its regulated cryptocurrency sector by issuing new operational licenses for digital asset platforms.
Recently, the SFC announced the approval of two more exchanges based in Hong Kong—PantherTrade and YAX—bringing the number of licensed platforms to two since the licensing initiative began in 2024.
Records accessible from the Hong Kong government verify that these newly licensed exchanges are registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which outlines the regulatory framework for digital asset trading platforms in the region.
As of now, since the launch of this regulatory approach in 2020, a total of 10 crypto exchanges have received official registrations, enabling them to operate legally in Hong Kong.
Featured image created with DALL-E, Chart from TradingView