Beware: SFC Adds Unlicensed Virtual Asset Trading Platform iSCAT to Alert List

The Securities and Futures Commission (SFC) of Hong Kong has issued a public warning about an unlicensed virtual asset trading platform (VATP) known as International Standard Carbon Assets Technology Co., Limited, which operates under the names "iSCAT" and "iSCAT Exchange." This platform conducts business via the website https:// www.iscatex.com and the mobile application "iSCAT Exchange."

According to the SFC, "iSCAT" and "iSCAT Exchange" have not been licensed to operate as a VATP in Hong Kong. The company claimed to offer cryptocurrency trading services and solicited investors via social media platforms, directing them to its website and mobile application to invest in cryptocurrencies.

The SFC emphasizes that under the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is illegal to conduct regulated activities or provide virtual asset services—such as operating a virtual asset exchange—in Hong Kong without a proper license. Regulated activities here include but are not limited to, dealing in securities, dealing in futures contracts, and leveraged forex trading.

On January 10, 2025, the SFC listed "iSCAT" and "iSCAT Exchange" and its respective website on its Suspicious Virtual Asset Trading Platforms Alert List.

source: SFC Alert List

The SFC cautions investors against engaging with unregulated VATPs. Investors are at risk of losing their entire investment if such platforms cease operations, collapse, are hacked, or suffer from asset misappropriation.