Hong Kong's financial markets watchdog has issued a warning over the risks of online platforms for cryptocurrency and other digital asset deposits.
"Investors are urged to be wary of the potential high risks" associated with so-called "virtual asset arrangements,"
the Securities and Futures Commission (SFC) said in a statement. The announcement comes at a tumultuous time for the cryptocurrency market. This week the founder of failed crypto exchange FTX was arrested and charged. "
Whilst some VA [virtual asset] Arrangements are commonly labelled or marketed as 'deposits' or 'savings' products, they are not regulated and are not the same as bank deposits. Investors are not afforded with any form of protection," the SFC said. "If they cannot fully understand them and bear the potential significant or total losses, they should not make an investment," it added.
