The Hong Kong Securities and Futures Commission (SFC) issued an announcement warning about four products: "FoFund Plus One", "FoFund Plus Two", token "Fo Coin", and "Paradise Non-Fungible Token (Paradise NFT)", stating that they are unauthorized and soliciting public investment, urging investors to be cautious.
Common Outlines of Suspicious Products
According to information disclosed on the SFC website, "FoFund Plus One" and "FoFund Plus Two" promote cryptocurrency-related investment portfolio strategies; "Fo Coin" targets the token market; "Paradise Non-Fungible Token" is dressed in an art collection guise. Though targeting different domains, they all lack transparency, have no public audit, and are not on the SFC's approved sales list.
Additionally, the SFC disclosed the specific operational teams and social media accounts of these projects, cautioning investors to be careful and avoid being deceived.
Regulatory Pace is Accelerating
This action is not an isolated incident. On August 1st, Hong Kong's Stablecoin Regulation will take effect, requiring stablecoin issuers to apply for a license from the Hong Kong Monetary Authority and comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
Moreover, since June 2023, centralized exchanges and virtual asset trading platforms must apply for Type 1, 4, 7, and 9 licenses from the SFC. After the new regulations, distribution and custody services will also be brought under jurisdiction. In other words, operating without a license in Hong Kong will become increasingly difficult, and regulatory tightening is inevitable.
Three Investment Layout Reminders
For ordinary investors, the SFC's announcement brings three insights. First, verify licenses: check the list on the SFC website before entering any platform. Second, understand the structure: high returns often accompany high risks, so pause if there's a lack of public audit or fund usage explanation. Third, pay attention to timing: after the stablecoin regulation takes effect, compliance thresholds will rise, and truly surviving projects will be more transparent and easier to track by regulators.
The innovative story of virtual assets is far from over, but the next chapter will certainly be built on a clear and transparent regulatory foundation.
