Hong Kong Authorities Investigate Cryptocurrency Companies LonShiX and Bitbank
Date: 2023-12-21 Author: Dima Zakharov Categories: IN WORLD
Hong Kong Authorities Launch Investigation into LonShiX and Bitbank
In a significant development in the cryptocurrency world, Hong Kong's Securities and Futures Commission (SFC) has begun investigative proceedings against two cryptocurrency companies, LonShiX and Bitbank. The SFC has raised concerns about these companies operating without the required licenses for engaging in activities associated with digital asset trading.
Misleading Practices and Fake Addresses
The SFC has pointed out that LonShiX misled users by providing a fictitious registration address in Hong Kong and actively used social engineering tactics to attract investors to its trading platform, urging them to open accounts.
Deceptive Online Information
Bitbank, on the other hand, is suspected of disseminating misleading information about itself and its business operations online. Specifically, the SFC believes that Bitbank falsely claimed to have obtained SFC permission and initiated the application process for a virtual asset service provider license.
Legal Action Taken
Upon the SFC's request, the Hong Kong police have taken steps to block access to the websites of LonShiX and Bitbank, as well as their respective social media accounts.
This move follows the SFC's recent blacklisting of the websites of projects HongKongDAO and BitCuped, with accusations of spreading false information. The investigation into LonShiX and Bitbank represents a broader effort by Hong Kong authorities to regulate the cryptocurrency industry and protect investors from potential risks.
