- The Securities and Futures Commission (SFC) has reportedly labeled Floki's staking program as a 'suspicious investment product'.
- Floki's team has decided to halt access to its Floki and TokenFi staking programs for users located in Hong Kong until further notice.
- This action follows previous warnings issued by the Hong Kong SFC cautioning investors about the risks associated with investing in high-risk and unregulated virtual asset platforms.
The meme cryptocurrency project Floki has faced regulatory scrutiny from the Hong Kong Securities and Futures Commission (SFC), following allegations regarding its token staking program's classification as a 'suspicious investment product'. In response, Floki's team has taken proactive measures, including halting access to the staking programs for users in the region until further notice.
Floki's response to the allegations was articulated in a statement released via Medium, where the team acknowledged the concerns raised by the SFC and outlined steps taken to address regulatory uncertainties. This included preventing Hong Kong users from participating in the staking programs, issuing warning notices, and halting offline marketing activities in the region. The team also clarified that the high annualized percentage yield (APY) of the staking program is maintained through a unique reward structure utilizing $TOKEN derived from the sister project TokenFi.
The Hong Kong SFC's cautionary stance on high-risk and unregulated virtual asset platforms has been reiterated, warning investors about the lack of regulatory oversight and protection for such investments. This advisory was previously issued in December 2022.
In terms of price action, FLOKI is currently priced at $0.00002938 with a 24-hour trading volume of $10,325,692.03. While showing a 2.06% increase over the past 24 hours and a 5.24% rise over the last 7 days, FLOKI's performance remains relatively subdued compared to the broader cryptocurrency market, experiencing a 5.40% surge in the past week. Notably, it trails behind similar cryptocurrencies within the Ethereum Ecosystem, which have seen an average gain of 12.70%.
Disclaimer: While Voice of Crypto endeavors to provide accurate and timely information, it cannot be held liable for any omissions or inaccuracies. Investors are advised to conduct thorough research and exercise caution when dealing with highly volatile financial assets like cryptocurrencies.
#HongKongCryptoHub #SFC #Floki #Crypto2024 #cryptocurrency