Increasing Crypto Exchange Impersonation Scams Alerted by Hong Kong Regulators

By: Isha Das

The Securities and Futures Commission (SFC) of Hong Kong has voiced concern over a series of suspicious websites impersonating licensed crypto exchanges in the city-state, as outlined in a warning issued on March 4. The impostor sites appear to mimic the image and branding of both Hash Blockchain Limited and OSL Digital Securities Limited, misleading investors and tricking them into interaction.

Complaints received by the regulator disclosed issues with unauthorized high fees and withdrawal difficulties. In response, the SFC advises investors to practice extensive due diligence before engaging with any crypto exchange and reports that local law enforcement has taken action against the fraudulent sites. The financial authority also alerts the public to possible additional platforms replicating trusted entities, and urges customers to verify the registration status of any institution before interaction.

In another instance, earlier in February, a similar warning was issued against a fraudulent entity posing as the MEXC Global crypto exchange. Concurrently, Hong Kong has emerged as a preferred location for crypto exchanges owing to its clear-cut regulations and strategic position in the Asian market. Recently, the regulatory body has received license applications from several key exchanges including Crypto.com, OKX, HTX, and ByBit.