Hong Kong Cracks Down on “Crypto Firms” LonShiX and Bitbank

• The SFC has cracked the whip on two entities.
• The regulator alleged the entities are involved in suspicious crypto-related fraud.
• The SFC warned the public to avoid the entities.

The Hong Kong securities watchdog has taken multiple regulatory actions against two firms accused of engaging in fraudulent activities purporting to be related to crypto .  

On December 20, the Securities and Futures Commission (SFC) issued an advisory against entities operating under LonShiX and Bitbank (Global) Financial Holding Group, urging the public to beware of them.

SFC Cracks the Whip

In the statement , the SFC accused LonShiX of lying about its location in Hong Kong by presenting a fake address on its website, which further claims to offer digital currency, foreign exchange, and other investment services.

The regulator stated that LonShiX “lures investors to open investment” accounts on its platform through individuals falsely claiming to be investment professionals authorized by banks. The platform targets users via social media platforms and instant messaging apps.

As for Bitbank, the SFC claimed that the entity has adopted a name that is very similar to that of a crypto exchange based in Japan when, in fact, they are not associated. The company is also accused of falsely claiming that it had obtained SFC licenses and begun to apply for a virtual asset service provider’s license.

While the SFC reiterated that these claims are merely allegations, the regulator took several measures to protect unsuspecting investors.  

Besides adding the websites of the above entities to its Suspicious Virtual Asset Trading Platforms Alert List, the SFC has advised the public to avoid the companies and to be cautious of dubious virtual asset-related investment advice and opportunities flaunted on social media.

Read about other crypto platforms flagged by the SFC:
Hong Kong SFC Flags Two Crypto Platforms for Suspected Fraud

Stay updated on Hong Kong’s ambition of becoming a leading crypto hub:
Hong Kong Unveils New Recommendations to Boost Blockchain Leadership