Hong Kong’s Securities and Futures Commission (SFC) has issued a public warning against two cryptocurrency trading platforms, BitCloud and TCAME, citing concerns over potential fraud-related activities. This announcement follows a recent alert regarding another platform, Sure X, which was accused of unauthorized crypto trading under the guise of blockchain education.

Intensified Oversight on Crypto Trading

In a statement released on April 12, the SFC disclosed that both BitCloud and TCAME have been added to its Suspicious Virtual Asset Trading Platforms Alert List. This action was prompted by multiple investor complaints regarding difficulties in withdrawing funds from these platforms. According to the SFC, the platforms have been exploiting social media and instant messaging apps to recruit users, subsequently making it challenging for them to access their money. Allegedly, the platforms requested additional deposits as a condition for processing withdrawals and arbitrarily froze user accounts.

The SFC’s investigation further revealed deceptive claims by the platforms regarding their regulatory status. BitCloud, which operates through the website https://www.tobitcloud.com/, falsely claimed certifications from the Financial Crimes Enforcement Network (FinCEN) and the National Futures Association (NFA). Similarly, TCAME, is accessible at app.tcame.vip, misrepresented having licenses from the Financial Services Authority of St. Vincent, the Canadian Money Services Business, and the Philippines’ BSP.

Call for Vigilance

The regulator urges the public to exercise caution and verify the legitimacy of any platform offering crypto trading services. This series of warnings highlights the SFC’s ongoing efforts to protect investors from fraudulent schemes and unlicensed operators in the rapidly evolving cryptocurrency market. The crackdown reflects a broader initiative to enhance the regulatory framework and ensure compliance within the sector, safeguarding the financial interests of the Hong Kong public.