The regulatory authority in Hong Kong has issued a warning to the public regarding an unlicensed cryptocurrency trading platform called International Standard Carbon Assets Technology Co., Limited, commonly referred to as iSCAT or the iSCAT Exchange. This platform has been operating without the necessary licenses from the appropriate regulatory body, which is essential for any virtual asset trading platform (VATP) operating within Hong Kong.
iSCAT and its associated service platform have claimed to offer cryptocurrency trading services. They have utilized various social media channels to promote their website and mobile application, encouraging potential investors to engage in cryptocurrency trading.
The website for iSCAT is accessible at a specific URL, and they also have a mobile application under the name iSCAT Exchange. It is critical to note that operating a VATP or providing virtual asset services in Hong Kong without the requisite licenses constitutes a violation of local laws. This includes the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, both of which highlight stringent regulations on such activities.
In light of these violations, the platform has been added to the Suspicious Virtual Asset Trading Platforms Alert List. This list serves as a cautionary resource for investors, advising them to remain vigilant and conduct thorough research before engaging with any virtual asset trading platform.
The regulatory body has reiterated its concerns about the risks associated with investing in virtual assets through unregulated platforms. Investors who choose to trade on such platforms expose themselves to significant financial risks, including the potential loss of their entire investment due to operational failures, hacking incidents, or theft of assets.
In the context of the growing popularity of cryptocurrency and digital assets, it’s crucial for investors to ensure that they deal only with licensed and regulated platforms. The absence of regulatory oversight can lead to dire consequences for investors, including financial losses and complications in recovering funds.
Individuals considering engaging with virtual asset trading platforms are urged to reflect upon the regulatory framework in place and verify that platforms are compliant with all legal requirements before proceeding with transactions.