Hong Kong Regulators Target Unlicensed Crypto Exchange Falsely Linked to Elon Musk
Summary:
Hong Kong securities regulators are cracking down on Quantum AI, an unauthorized cryptocurrency exchange that falsely claimed affiliations with Elon Musk. The now-defunct platform allegedly used AI to generate videos and images of Musk's association to lend it credibility. Local police have been instructed to remove Quantum AI's website and social media accounts. Amid this crackdown, the Hong Kong Monetary Authority and the Central Bank of Hong Kong announced a joint exploration of asset tokenization with local companies, kicking off with the formation of Project Ensemble Architecture Community.
Hong Kong officials are cracking down on an unauthorized cryptocurrency exchange that falsely claimed connections to Elon Musk, CEO of Tesla and avid promoter of Dogecoin (DOGE). The Hong Kong Securities and Futures Commission (HKSFC) sounded the alarm about Quantum AI, which purportedly offers AI-driven crypto trading services.Quantum AI, based in Hong Kong, alleged that Musk was the creator of the AI technology fundamental to its crypto trading on its now-defunct website. Evidence also shows the entity used AI to create videos and images of Elon Musk for use on their website and social media channels. The HKSFC has further suspicions that Quantum AI propagated deceptive information about itself via an unidentified news site with the intent to market its crypto trading services and construct credibility amongst unsuspecting local crypto investors. Authorities warned that Quantum AI made false promises of extraordinarily high returns on investments using its technology on this “news” website. According to local media agency Jinse, HKSFC instructed the local police force to take down Quantum AI’s website and all associated social media accounts. So far, 23 crypto exchanges have requested licensing in Hong Kong. HKSFC stopped accepting new applications for crypto licenses in February and ordered all unregistered entities to cease operations by the end of May. In the midst of this ongoing action against unregistered crypto exchanges, the Hong Kong Monetary Authority (HKMA) and the Central Bank of Hong Kong have formed a partnership with local private sector businesses such as HSBC and HashKey to investigate asset tokenization. The HKMA revealed the creation of a “Project Ensemble Architecture Community” on the 7th of May. Its purpose is to set tokenization standards by bringing together industry representatives and regulators. One of the goals of the initiative is to foster and facilitate collaboration between wholesale central bank digital currencies (wCBDCs) - digital currency used exclusively between banks and financial institutions.
Published At
5/8/2024 2:47:21 PM
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