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SFC Marks Floki Staking Programs as Unauthorized

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The Floki team promised its investors that it will use all available avenues to satisfy all obligations to the appropriate Hong Kong regulatory agencies.

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The public has been alerted by the Hong Kong Securities and Futures Commission (SFC) to potentially hazardous investment products such as the “Floki Staking Program” and the “TokenFi Staking Program.” The Floki ecosystem is linked to both items.

The SFC claims that these products provide staking services and guarantee annualized returns between thirty percent and more than one hundred percent. The watchdog did point out that neither product has been given the go-ahead to be sold in Hong Kong to the general public.

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Through staking, users can increase the security of the blockchain and receive incentives. Like putting money into a savings account, people who stake cryptocurrencies contribute to a staking pool. The blockchain’s security and decentralization are guaranteed by the proof-of-stake mechanism, which validates transactions.

The SFC underlined that the organization in charge of these two products has not provided a compelling explanation for how it plans to meet the high annualized return targets that have been stated.

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The SFC progress was discussed by the Floki team in their weekly summary live spaces on the X (previously Twitter). The cryptocurrency platform made it clear that the staking programs’ excessive performance is the sole grievance raised by the SFC.

Although Floki was unable to disclose details regarding the talks it had with the SFC, it did clarify that it worked with a marketing firm to launch the advertisements for the TokenFi Staking Program and the Floki Staking Program. The agency got media coverage, and the Floki crew thought they had the go-ahead.

The Floki team, however, stated that they were unable to comment on whether the marketing effort would continue in Hong Kong for the time being. The group gave its investors the assurance that it would use all available means to comply with the regulations set forth by the Hong Kong government.

The SFC emphasizes that the public in Hong Kong can get information about these two products online. As a result, the goods and all pertinent information were added to the SFC’s Suspicious Investment Products Alert List on January 26, 2024.

Staking agreements involving digital assets should be avoided by investors, as they may be illegal collective investment schemes, according to the SFC. Due to the considerable risk involved in these arrangements and the possible lack of protection provided by the Securities and Futures Ordinance, investors may lose all of their money.

The SFC has also underlined how dedicated it is to upholding legal requirements and shielding investors from dishonest schemes. It stated that necessary legal action will be taken in response to any legal violations, including the marketing of unauthorized collective investment schemes.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


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