In a recent development, Floki has issued a formal response to the Securities and Futures Commission (SFC) of Hong Kong’s warning about its investment program, which has stirred controversy. The SFC’s cautionary note highlighted potential risks associated with the program, urging investors to exercise due diligence. Floki’s reply aims to address concerns, clarify the program’s objectives, and reinforce its commitment to compliance and investor protection. This interaction marks a significant moment in the dialogue between emerging cryptocurrency ventures and regulatory bodies, emphasizing the importance of transparency and regulation in the sector.
SFC Warning
The Securities and Futures Commission (SFC) of Hong Kong issued a warning on Floki’s investment scheme, and the meme-based cryptocurrency development team has responded. Floki, in an official statement posted on Medium, expressed remorse for the “extreme actions” that the SFC had taken. The SFC branded Floki as a “suspicious investment program,” highlighting the high Annual Percentage Yields (APY) from TokenFi and Floki’s staking program. However, the Floki team maintains that they have proactively addressed regulatory issues, especially in regions without staking program coverage.
The Floki team says they have collaborated with their legal consultants to address possible regulatory concerns. The company underscored its adherence to legal compliance and regulatory obligations in its operational countries, even if defining operational boundaries can be challenging due to the cross-border nature of the internet. Floki states that they have taken significant actions, including notifying users, blocking Hong Kong users from accessing the staking program, and ceasing offline marketing efforts in the region. Hong Kong users have not participated in the program as of yet.
The “Floki Staking Program” and the “TokenFi Staking Program,” which showcase schemes that guarantee striking annual earnings ranging from 30% to over 100%, were the subject of a public warning from the SFC on January 26. The regulator issued a warning, stating that the public is gravely concerned about the high return claims and the lack of SFC authorization. Floki is currently working hard to repair its reputation and show that it takes new regulatory concerns seriously.
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