Hong Kong Securities and Futures Commission (SFC) Warns Against Unauthorized Crypto Staking Programs

The SFC in Hong Kong has issued a public warning regarding two crypto investment products associated with the Floki ecosystem, namely the “Floki Staking Program” and the “TokenFi Staking Program.” The SFC has flagged these programs as unauthorized and expressed concerns over their annualized return promises, ranging from 30% to over 100%. The SFC emphasized that neither of these staking products has obtained authorization for public sale in Hong Kong. In response, the Floki team defended its programs but did not provide specific details about discussions with the SFC. The SFC’s warning aims to caution the public against potential risks associated with unauthorized crypto staking schemes.

The SFC’s warning reflects the regulatory scrutiny surrounding crypto investment products, particularly those promising high returns. The cautionary stance underscores the importance of adhering to regulatory standards in the crypto space to protect investors and maintain market integrity. Market participants should stay vigilant and ensure compliance with local regulatory requirements to avoid legal consequences. (Source: coindesk)