Hong Kong is reeling from two recent major cryptocurrency fraud cases that have collectively ensnared over 2,500 alleged victims and resulted in losses totalling over HK$1.6 billion ($200 million).
The enormous scale of the scams has exposed flaws in Hong Kong’s cryptocurrency regulations and prompted demands for greater powers to tackle unlicensed platforms.
Keypoints
- Hong Kong authorities are considering giving more powers to regulators to tackle cryptocurrency scams after recent major cases involving alleged fraud totalling over HK$1.6 billion
- Critics say legal loopholes prevented watchdog Securities and Futures Commission (SFC) from taking action against unlicensed crypto platforms like Hounax
- Hounax allegedly scammed 145 Hong Kong residents out of about HK$148 million after promoting investments through social media and chat groups
- Lawmakers accused SFC of reacting too slowly in warning public about latest…
