Fake crypto exchange websites added to Hong Kong SFC’s blacklist

Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has taken action against fake websites that are posing as major local cryptocurrency exchanges. On March 4, the SFC issued an official warning about multiple suspicious websites impersonating two licensed crypto trading platforms. These online perpetrators created fake domains to impersonate OSL Digital Securities and Hash Blockchain Limited, also known as HashKey, both of which are licensed exchanges in Hong Kong. In response, the SFC blocked six websites: hskexpro.com, hskex.com, hskexs.com, hskexit.com, oslexu.com, and oslint.com. These measures were taken due to reports of difficulties in withdrawing funds and high fees and commissions for withdrawals.
At the request of the SFC, the Hong Kong Police Force has taken steps to block access to these websites. The SFC has listed these websites on its official crypto alert list, which includes other fake websites impersonating various crypto exchanges, such as MEXC. On February 9, the SFC blacklisted eight domains impersonating MEXC.
The SFC is urging investors to verify the authenticity of trading platforms by using its public register of licensed persons and registered institutions, as well as the list of licensed virtual asset trading platforms for relevant information on licensed entities, including their official websites. The regulator emphasized that investors should not send money or engage in any transactions without verifying the counterparty’s identity.
Detecting whether a website is genuine or fake can be challenging, according to Bartosz Barwikowski, a security expert at blockchain security firm Hacken. He explained that it is particularly difficult for users accessing a website for the first time. Barwikowski noted that while users could check the SEC website to confirm the URL, less than 1% of people actually do so. He recommended that users rely on trusted third parties instead of search engines or social media channels, like Reddit, as scammers can easily manipulate the results.
Barwikowski provided two recommendations for users to avoid fake websites:
1. Use trusted third parties for verification.
2. Be cautious of search engine and social media results, as they can be manipulated by scammers.
This news comes shortly after the SFC closed the application process for crypto exchanges in the latest round of the licensing cycle on February 29. Any exchanges that failed to register or submit applications by that date must exit the region within three months.