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"Many IFAs are questionable and downright fraudulent," says the Hong Kong regulator

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A senior official from the Hong Kong Securities Regulatory Authority has, once again, reminded the public to exercise caution offerings (ICO).

During a speech on new technologies Friday, the Deputy Director of the Hong Kong Securities Commission (SFC), Julia Leung, reiterated her concerns about the risks associated with coin offerings initials.

"While we recognize that innovative technologies like blockchain have the potential to improve efficiency and financial inclusion, this does not allow anyone to conduct fundraising campaigns in violation of laws. on securities, "said Leung. protecting first and foremost the investing public.

Leung, who is also president of the SFC's Fintech Advisory Group, said the average investor would struggle to decipher the "highly technical content and opacity" of some projects seeking to collect money. funds, stating that it investors of venture capital funds instead.

More specifically, his comments then drew attention to projects that claimed to use blockchain technology as a buzzword to promise high technological claims with little or no innovation to back those promises. .

She declared:

[M] Any of these fundraisers is questionable, if not downright fraudulent. Issuers elude review by the police or securities regulators because of their cross-border nature and the way in which cryptographic assets are structured so as not to be located within the perimeter. a regulatory body.

The grievor's comments follow an earlier statement in September that provided guidance to OIC issuers to follow prior to a fundraising operation. Some ICOs could also be considered "securities," said Leung at the time

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The scrutiny since at least seven exchanges with a domestic presence receives warning letters from the regulator, reminding them not to exchange cryptocurrency tokens considered unlicensed "securities". "The SFC will continue to closely monitor country offices and will not tolerate any violations of Hong Kong securities laws," the regulator said at the time.

In March, the SFC decided to close an initial offer of parts citing "potential unauthorized promotional activities and unauthorized regulated activities"

Given the growing public interest, the Hong Kong authorities launched an awareness campaign among investors and the general public about cryptocurrencies and country offices in early January using advertisements, infographics, articles and more.

"Many young people who subscribe to digital tokens in ICO5 understand that there is no intrinsic value in the chips but bet on the rapid rise in symbolic value in the secondary market" Leung added. Mercurial rise and falling bitcoin prices "causing a" commercial frenzy "among new and retail investors in the space.

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