On 25 July 2024, the Securities and Futures Commission (SFC) issued a stern warning to the public regarding an unlicensed virtual asset trading platform known as CoinUnited.io. The platform, which claims to provide trading services across a range of assets including cryptocurrency, stocks, indices, forex, and commodities, has also previously advertised having a flagship store in Hong Kong and being active in local hiring. Despite these claims, CoinUnited.io has neither obtained a license from the SFC nor applied for one, rendering its operations illegal under the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
The SFC’s action against CoinUnited.io is driven by several critical factors such as the platform’s lack of licensing, its false claims about having a physical presence and recruitment efforts in Hong Kong, and the overarching need to protect investors. By operating without a license, CoinUnited.io is evading regulatory oversight, raising serious concerns about its legitimacy and the safety of investor funds. The SFC’s intervention is its commitment to safeguarding the public from potential fraud and financial loss, ensuring that only regulated and compliant platforms are trusted with investor money.
In response to these violations, the SFC has taken decisive action by adding CoinUnited.io and its associated website to the Suspicious Virtual Asset Trading Platforms Alert List as of 25 July 2024. This SFC’s unwavering commitment to investor protection by continually updating this alert list, it ensures that investors are well-informed about unregulated entities that pose a significant risk to their financial security. This vigilance is crucial in preventing potential fraud and safeguarding the investments of the public.
The SFC strongly advises investors to exercise caution and avoid engaging with unregulated virtual asset trading platforms. Such platforms carry considerable risks, including the potential for total investment loss if the platform ceases operations, collapses, gets hacked, or suffers from asset misappropriation. Investors are urged to verify the licensing status of any virtual asset trading platform through the SFC’s official List of Licensed Platforms to ensure they are dealing with a legitimate entity.
CoinUnited.io is purportedly operating at hxxps://coinunited[.]io/. “Regulated activity,” as defined in Part 1 of Schedule 5 to the SFO, includes dealing in securities, dealing in futures contracts, and leveraged foreign exchange trading. These activities require proper licensure to ensure compliance with financial regulations and to protect investors from potential risks.
The SFC remains steadfast in its mission to uphold the integrity of the financial market in Hong Kong. By taking swift and firm action against fraudulent or unlicensed virtual asset trading platforms, the SFC reinforces a safer and more transparent market environment. This commitment not only protects investors but also promotes trust and confidence in the financial system.
(Source: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR126)
