
- The SFC has issued a public warning against two crypto-related products.
- The regulator added the products to its warning list.
- Investors were reminded that they would have โvery limitedโ or โnoโ protection if they lost money.
Hong Kong’s securities watchdog has cautioned the public against โsuspicious investment productsโ tied to Floki and TokenFi staking services.
The warning follows an announcement by the Floki team last month that Floki and its sister project TokenFi were set to โdominate Hong Kong in aggressive 2-month marketing campaign.โ The campaign saw both tokens flood advertisement boards on tramcars, digital city bus screens, and office towers.
SFC Adds Floki and TokenFi Products to Warning List
In a press release dated January 26, Hong Kongโs Securities and Futures Commission (SFC) warned the public about the โFloki Staking Programโ and โTokenFi Staking Programโ, stating that both investment products claimed to offer annualized return targets of โ30% to over 100%.โ
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The SFC noted that the two products were active in the local market without the regulatorโs authorization. Further, the securities watchdog faulted the administrator of the two products for failing to demonstrate to the โSFCโs satisfactionโ how the annualized return targets could be achieved.
โThe SFC notes that information regarding these two products and the products themselves are accessible to the Hong Kong public via the internet. This led the SFC to post the two products and their related information on the SFCโs Suspicious Investment Products Alert List on 26 January 2024,โ the statement read.
The SFC reiterated that investors would have โvery limitedโ or โno protectionโ under the Securities and Futures Ordinance (SFO) if they fell victim to dubious โstaking arrangementsโ related to virtual assets.
Read about 2024 Bitcoin Conference coming to Hong Kong:
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Stay updated on Hong Kongโs approach toward stablecoin regulation:
Hong Kong Steps Up Stablecoin Regulatory Efforts