The Securities and Futures Commission (SFC) of Hong Kong has issued a stern warning to the public regarding two staking products, the “Floki Stake Program” and the “TokenFi Stake Program.” The financial regulator called the two staking products “suspicious,” both of which are affiliated with the Floki protocol.
Hong Kong SFC issues warning on pledge
The SFC mentioned in a media release that the Floki Staking Program and the TokenFi Staking Program claim to offer “high annualized return targets ranging from 30% to over 100%.” However, the regulator stressed that the two cryptocurrency products have not yet been authorized in Hong Kong.
Staking is a way for cryptocurrency holders to earn rewards while supporting the operation of the blockchain. When owners send their crypto assets to a staking pool for a specific period of time, they can earn more cryptocurrency.
The SFC stated that Floki Protocol failed to satisfactorily demonstrate how its staking projects would achieve high annualized return targets. As a result, the financial regulator added these products to the suspicious investment product alert list on Friday, January 26.
Additionally, the SFC issued a stern warning to investors regarding “pledge” arrangements related to digital assets, as they may carry high risks and lead to unauthorized collective investment schemes. The financial regulator added:
Investors should also be cautious of investment products that claim to offer returns that are “too good to be true” and be vigilant when making investment decisions.
Ultimately, the SFC reinforced its commitment to ensuring compliance with regulatory standards and protecting the Hong Kong public from fraudulent schemes.
Floki Team Addresses 'Suspicious Product' Claim
On Saturday, January 27, the Floki team discussed the SFC’s statement regarding its collateralized product in the X platform’s weekly review space. The protocol hinted that it is in dialogue with the Hong Kong regulator on the matter.
Although the team did not reveal much about the negotiations with the SFC, it did mention working with a marketing agency to start promoting the staking product. The protocol claims that it believes it has received approval after the marketing agency obtained media space.
Looking ahead, the Floki team noted that there is no certainty whether marketing activities for the Floki Staking Program and the TokenFi Staking Program will continue in Hong Kong. However, the protocol promises investors that it will ensure that all necessary terms from the regulator are fulfilled. #香港监管机构 #Floki
