Coin Edition -
- The Floki team has expressed regret over the SFC’s “extreme” regulatory measure.
- According to the Floki team, it is taking steps to address the concerns raised by the SFC.
- The team affirmed its law-abiding status and efforts to comply with regulatory requirements in its operating regions.
The team behind the meme-based crypto Floki has responded to the Security and Futures Commission (SFC) of Hong Kong warning, labeling it a “suspicious investment program.” In a Medium post, the Floki team stated that it is taking steps to clarify the issues, expressing regret that the SFC took such an “extreme” measure.
A segment of the Floki team’s statement read:
We’ve taken steps to mitigate concerns in jurisdictions where the regulatory framework does not specifically cover or cater for the staking programs… As indicated by the statement of the SFC, it appears that the high APY of the Floki and TokenFi staking programs is their key concern.
The Floki team claimed via the Medium post that it has worked with its legal advisers to clarify and address potential regulatory issues relating to the staking programs. It affirmed its law-abiding status and efforts to comply with regulatory requirements in its operating regions.
Due to the nature of the internet, the team acknowledged the increasing difficulty in defining its operational areas. However, it noted that efforts are in place to mitigate concerns in jurisdictions where the regulatory framework does not cover or cater to its staking programs.
According to the team, it has taken steps to address the SFC’s regulatory concerns. Some steps it took include warning notices, blocking Hong Kong users from their staking programs, and pausing their offline marketing campaign in the region. Hence, no Hong Kong users have joined the program to date.
On January 26, the SFC issued a public warning against the “Floki Staking Program” and “TokenFi Staking Program.” According to the regulator, the schemes promised annualized returns between 30% and over 100%. Hence, it raised significant concerns due to their unverified high return claims and lack of authorization from the SFC.
The post Floki Responds to “Suspicious Investment Program” Labeling by the SFC appeared first on Coin Edition.