- 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 “very limited” or “no” protection if they lost money.
Hong Kong’s securities watchdog has cautioned the public against “suspicious investment products” 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 “dominate Hong Kong in aggressive 2-month marketing campaign.” 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 Kong’s Securities and Futures Commission (SFC) warned the public about the “Floki Staking Program” and “TokenFi Staking Program”, stating that both investment products claimed to offer annualized return targets of “30% to over 100%.”
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The SFC noted that the two products were active in the local market without the regulator’s authorization. Further, the securities watchdog faulted the administrator of the two products for failing to demonstrate to the “SFC’s satisfaction” how the annualized return targets could be achieved.
“The 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 SFC’s Suspicious Investment Products Alert List on 26 January 2024,” the statement read.
The SFC reiterated that investors would have “very limited” or “no protection” under the Securities and Futures Ordinance (SFO) if they fell victim to dubious “staking arrangements” related to virtual assets.
Read about 2024 Bitcoin Conference coming to Hong Kong:
2024 Bitcoin Conference Set for Hong Kong in May
Stay updated on Hong Kong’s approach toward stablecoin regulation:
Hong Kong Steps Up Stablecoin Regulatory Efforts
