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Hong Kong police report a surge in counterfeit banknotes linked to crypto scams

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Hong Kong police report a surge in counterfeit banknotes linked to crypto scams

The Hong Kong police have seen a notable surge in forged banknotes, with many of them being associated with cryptocurrency scams.

This presents a considerable obstacle for law enforcement agencies and regulatory bodies. From January to April of this year, law enforcement confiscated 3,396 counterfeit banknotes, which had a total nominal value of about HK$2.55 million ($326,130).

A significant number of these forged banknotes were specifically created for the purpose of being used in cryptocurrency transactions.

In three significant crypto fraud instances, the police seized 1,693 “training notes” and 347 low-quality counterfeit money, resulting in the arrest of three persons.

The majority of counterfeit banknotes exhibit substandard quality, prompting a police representative to advise the general public to verify the presence of security elements such as the dynamic shimmering pattern and windowed metallic thread that are characteristic of authentic Hong Kong cash.

Hong Kong is strengthening its cryptocurrency legislation in order to address the increasing incidence of fraud. The Securities and Futures Commission (SFC) has designated 11 crypto exchange platforms as “deemed to be licensed” in order to combat money laundering and assure the safety of trade.

Conversations are already taking place to explore the possibility of incorporating staking mechanisms into Ethereum (ETH) exchange-traded funds (ETFs). This might provide fresh investment prospects and enhance Hong Kong’s position as a financial center.

Hong Kong’s efforts to enhance crypto rules demonstrate its dedication to establishing a safe and transparent financial ecosystem. This include overseeing crypto exchanges and investigating novel financial instruments such as ETH ETFs with staking.

Two weeks ago, reports came showing that Hong Kong’s crypto ETFs have lagged behind US spot ETFs, which own $55 billion. This came after Hong Kong’s crypto ETF launch was underwhelming. According to Bloomberg, six Hong Kong Bitcoin and Ether ETFs lost $25 million in inflows from $293 million.

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