Hong Kong’s Securities and Futures Commission (SFC), the country’s main securities regulator, has issued a warning against VGS, a company trading online that describes itself as “the world’s leading virtual currency trading platform”.
This is the second warning today from the watchdog which earlier issued an alert on brokerage firm Florin Investment after it targeted Hong Kong investors without authorisation.
VGS, which operates online via the url www.xsvg.com, does not reveal any address details on its website and has been flagged by the SFC as a suspicious website. This is clearly evident on sight and highlighted by its complete lack of transparency.
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The SFC points out that suspicious website operators often use names similar to legitimate companies to confuse investors, which appears to have been the case in this instance, and does not, as it may imply in the following extract from its website, have any association with HKEX.
“Virtual currency | hkex established financial centres in Asia – Hong Kong in 2011, is one of the world’s leading international virtual currency trading platform”.
The SFC’s comprehensive Alert List features the names of businesses that are unlicensed in Hong Kong and which are also believed to have targeted Hong Kong investors or made fraudulent claims to be associated with Hong Kong.
The addition of VGS brings to light the firm’s presence as an unlicensed financial entity that should be avoided as investors could find themselves investing with a brokerage that is potentially a scam.