SFC has Disclosed 7 Unlicensed and Suspicious Virtual Asset Trading Platforms, Use with Caution

The Securities and Futures Commission (SFC) is the financial regulatory authority in Hong Kong responsible for overseeing and regulating the securities and futures markets. Its primary role is to ensure the transparency, fairness, and healthy development of these markets.

On the SFC's website, there is a list of unlicensed firms and suspicious websites that includes companies that have not obtained licenses in Hong Kong and have attracted the attention of the regulatory body. These companies are suspected of currently or previously targeting investors in Hong Kong, or they claim to have connections to Hong Kong. Since 2021, the SFC has listed a total of 7 suspicious virtual asset trading platforms.

The websites of OSL Corporation, EFSPD, and futubit.com are currently inaccessible.

JPEX Suspected of Fraud Involving Approximately HKD 1.2 Billion

On September 13, 2023, the Securities and Futures Commission (SFC) of Hong Kong issued a warning statement titled “Regarding Unregulated Virtual Asset Trading Platforms.” The SFC noted the existence of a virtual asset trading platform named “JPEX,” emphasizing that none of the entities under this platform group hold licenses from the SFC, nor have they applied for licenses to operate virtual asset trading platforms in Hong Kong.

The SFC pointed out six concerning aspects related to JPEX:

• JPEX falsely claimed on its website to be a “licensed and recognized digital asset and

  cryptocurrency

  platform.” It also falsely asserted that it had obtained licenses to operate virtual asset trading platforms from several overseas regulatory authorities, which is not true.

• JPEX offered exceptionally high returns on some of its products.

• The SFC received complaints from retail investors who reported difficulties in withdrawing virtual assets from accounts they had opened with JPEX. Some investors found their account balances reduced and altered.

• Some of the products offered by JPEX seemed to involve arrangements related to virtual assets, such as virtual asset “deposits,” “savings,” or “earnings.” These arrangements are not permitted under the SFC's regulatory framework for virtual asset trading platforms.

• JPEX promoted its alleged business collaboration with a Hong Kong-listed company and claimed that the company had invested in it. In reality, this collaboration had ended, and the listed company had not made any investments.

• Social media influencers and off-exchange currency exchange shops made false or misleading statements on social media, suggesting that JPEX had independently or in partnership with a Hong Kong-listed company applied for a license to operate a virtual asset trading platform in Hong Kong. However, none of the entities under the JPEX group had submitted any license applications for virtual asset trading platforms to the SFC.

JPEX had previously claimed to possess licenses from multiple countries. However, the investigation revealed that the directors of JPEX's companies in the United States, Canada, Australia, Lithuania, and other countries were different individuals. Furthermore, since its registration in 2020 and operation beginning in 2021, JPEX had never publicly disclosed its actual principals or office locations.

As of September 23, the police received reports from 2,086 victims, involving approximately HKD 1.3 billion.

SFC Adds Disclosure of Suspected Virtual Asset Trading Platform “HOUNAX”



The Securities and Futures Commission (SFC) of Hong Kong has updated its “List of Unlicensed Entities and Suspicious Websites” on November 1, adding a new suspicious virtual asset trading platform named “HOUNAX.”

According to the information provided, “HOUNAX” claims to be a cryptocurrency trading platform and appears to target Hong Kong investors. This is evident in the user login page pre-filling the “+852” field, and the platform's presence on social media channels like Facebook, X (formerly Twitter), and YouTube with the name “Hounax Hong Kong.”