Hong Kong SFC Warns Against Unauthorized Crypto Investments

The Hong Kong Securities and Futures Commission issued a warning on July 29th against unauthorized investment products, including “FoFund Duoduo” series and “Taohuayuan NFT,” targeting Hong Kong residents.

This warning highlights regulatory scrutiny over unauthorized virtual asset investments, impacting market trust amid increased speculation. There is currently no significant impact on major cryptocurrencies.

SFC Flags Crypto Products Lacking Authorization

While official statements from key figures or industries remain absent, market reactions could sway perceptions of investor security in unregulated crypto products. The SFC’s listing on its Alert List aims to deter potential engagements, underscoring Hong Kong’s ongoing vigilance over unauthorized financial products.

Did you know?
Through past SFC warnings, unauthorized crypto products generally maintained minimal impact on established blockchain assets, reinforcing the separation between emerging unregulated offerings and established digital currencies like Bitcoin and Ethereum.

“FoFund (多多一号), FoFund (多多二号), Fo Coin, Paradise NFT (桃花源NFT) added to Alert List as ‘Other investments’ on July 28, 2025.” — Hong Kong SFC, Official Alert List

Ethereum Remains Stable Amid Regulatory Actions

Did you know? Through past SFC warnings, unauthorized crypto products generally maintained minimal impact on established blockchain assets, reinforcing the separation between emerging unregulated offerings and established digital currencies like Bitcoin and Ethereum.

Ethereum (ETH) current pricing reached $3,822.90 with a market cap of $461.47 billion at 11:58 UTC on July 29, 2025. The recent data shows a 24-hour trading volume at $35.83 billion, a 7.38% decrease. Over the last 30 days, Ethereum’s price surged 55.24%. Data sourced from CoinMarketCap.

Coincu’s research indicates that Hong Kong’s aggressive regulation could enforce stricter controls on digital assets, impacting investor operations and potentially slowing unauthorized offerings. Past enforcement actions suggest increased government oversight may align digital asset ventures with existing financial laws, promoting market stability and investor protection.