Hong Kong Regulator's Crypto Fraud Warning
The Hong Kong Securities and Futures Commission (SFC) recently issued a warning to the public regarding two entities suspected of involvement in crypto frauds. The entities in question are Hong Kong Digital Research Institute, also known as Hong Kong DAO, and Bitcuped. The SFC has taken action by requesting the Hong Kong Police Force to block access to the websites of these entities. Additionally, the SFC has issued cease and desist letters to relevant website operators, urging them to stop offering a token issued by Hong Kong DAO for purchase.
Suspected False and Misleading Claims
According to the SFC, Hong Kong DAO has been disseminating false and misleading information about itself and its business through online channels. The entity has issued a token called HKD, which is available for purchase on its website. The SFC suspects that investors may be at risk due to the deceptive practices of Hong Kong DAO.
Similarly, Bitcuped, another entity mentioned in the warning, has made false claims on its website. It falsely states that Laura Cha and Nicolas Aguzin hold positions as chairman and chief executive officer, respectively, within the organization. In reality, neither Cha nor Aguzin have any affiliations with Bitcuped.
Be Cautious of Online Investment Scams
The SFC emphasizes the importance of caution when it comes to investment opportunities and advice found on social media platforms and instant messaging apps. The regulator warns that individuals who are not investment professionals may entice unsuspecting investors with too-good-to-be-true schemes. The SFC advises the public to remain vigilant and be wary of potential fraud when making investment decisions.
Protecting Investors from Substantial Losses
The SFC's warning serves as a reminder to investors to stay vigilant and exercise caution. Online investment scams can involve various types of assets and are carried out through multiple channels. Falling victim to such scams can result in significant financial losses. The regulator's proactive measures aim to safeguard investors from fraudulent activities in the crypto space.
In conclusion, the Hong Kong Securities and Futures Commission's warning highlights the importance of being aware of potential crypto frauds. Investors are advised to thoroughly research any investment opportunities and seek advice from qualified professionals to protect themselves from falling victim to scams. Remember to stay vigilant and exercise caution when navigating the ever-evolving digital landscape of the cryptocurrency industry.
Frequently Asked Questions
Is gold a good IRA investment?
Any person looking to save money is well-served by gold. You can diversify your portfolio with gold. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
Gold is not created by governments, but it is extracted from the earth. This makes it highly valuable as it is hard and rare to produce.
Gold prices fluctuate based on demand and supply. The economy that is strong tends to be more affluent, which means there are less gold miners. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This means that more gold is produced, which reduces its value.
It is this reason that gold investing makes sense for businesses and individuals. You will benefit from economic growth if you invest in gold.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Plus, you won't lose money if the value of gold drops.
How does gold perform as an investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. Additionally, physical gold can be volatile because it must be stored somewhere.
What are the pros and cons of a gold IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. But, this type of investment comes with its own set of disadvantages.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
If you prefer your money to be kept out of a bank, then you will need insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the amount of gold that you are allowed to own. Some providers allow you to choose your weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts allow you to buy gold with more flexibility. They allow you to set up a contract with a specific expiration date.
You also need to decide the type and level of insurance coverage you want. The standard policy does NOT include theft protection and loss due to fire or flood. It does include coverage for damage due to natural disasters. If you live in a high-risk area, you may want to add additional coverage.
You should also consider the cost of storage for your gold. Insurance won't cover storage costs. In addition, most banks charge around $25-$40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians aren't allowed to sell your assets. They must instead keep them for as long as you ask.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. The plan should also include information about how much you are willing to invest each month.
After filling in the forms, please send them to the provider. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
irs.gov
bbb.org
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. This makes them great options for people who don't have access to employer matching funds.
It's important to save regularly and over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
—————————————————————————————————————————————————————————————-
By: Kevin Helms
Title: Hong Kong Regulator Warns of Crypto Frauds: What You Need to Know
Sourced From: news.bitcoin.com/hong-kong-regulator-warns-of-2-entities-suspected-of-crypto-frauds/
Published Date: Sat, 09 Dec 2023 10:30:07 +0000
