Hong Kong SFC blacklists fake crypto exchange sites

The Securities and Futures Commission (SFC), Hong Kong’s financial regulator, has taken action against fake websites posing as major local cryptocurrency exchanges. On March 4, the SFC issued a warning against multiple suspicious websites posing as two well-known licensed crypto trading platforms in the region.

Fraudsters have set up multiple domains

The fraudsters behind these malicious websites had set up multiple domains similar to those of OSL Digital Securities and Hash Blockchain Limited, better known as HashKey. In total, the SFC blocked six of these fake domains, including hskexpro.com, hskex.com, hskexs.com, hskexit.com, oslexu.com, and oslint.com. This action was taken after complaints were received about difficulties in withdrawing funds and the exorbitant fees and commissions involved.

The Hong Kong Police, at the request of the SFC, took steps to block access to these fraudulent websites. These fake domains have now also been included in the SFC’s official crypto warning list, alongside other fraudulent sites masquerading as crypto exchanges such as MEXC, which had eight fake domains blacklisted on February 9.

The SFC has encouraged investors to verify the authenticity of trading platforms by consulting the public register of licensed persons and registered institutions, as well as the list of licensed virtual asset trading platforms. This is to obtain essential information about licensed entities, including their official websites. The regulator emphasized the importance of verifying the identity of the counterparty before transferring funds or conducting transactions.

Distinguishing between real and fake websites is not always easy

Security expert Bartosz Barwikowski from Hacken highlighted the difficulties in distinguishing between real and fake websites, especially for new users. He recommended using mobile apps over websites due to the higher difficulty of spoofing them, and stressed the importance of checking reviews and consulting trusted third parties.

This news follows shortly after the SFC announced that the final applications from crypto exchanges for the most recent licensing cycle were accepted on February 29. Crypto exchanges that have not registered in time now have three months to leave the region.