Floki development team takes steps to clear suspicions from Hong Kong regulators | CoinDesk JAPAN

The team at FLOKI, a meme-based crypto asset (virtual currency) project, has learned that Hong Kong regulator Securities and Futures Commission (SFC) has placed their token betting program on the list of suspicious investment products. He stated that he is taking steps to clear the suspicions.

“We have taken steps to alleviate concerns in regions where regulatory frameworks do not specifically target staking programs,” the team said in a Medium post. “As the SFC statement indicates, the high APY (annual yield) of FLOKI and TokenFi’s staking programs appears to be their main concern.”

To address regulatory concerns in Hong Kong, the Floki team has implemented measures such as warnings, blocking Hong Kong users from staking programs, and suspending offline marketing campaigns in the region. confirmed that no Hong Kong users are participating in the program. Staking refers to locking crypto assets into a blockchain network in exchange for a reward.

The team maintains that FLOKI’s staking program’s high APY is maintained through a unique reward system using TOKEN, the native token of its successful sister project TokenFi, a market-responsive APY, and a decentralized and community-centric allocation strategy. The company explained in a post on Medium that it has not raised funds from VC or pre-sales.

In a December 2022 post, the SFC warns investors about the high risk and unregulated nature of crypto asset platforms offering deposit, savings and staking services, highlighting potential large losses and cautioning investors. urged.

“Although some (crypto-asset) arrangements are commonly labeled or sold as ‘deposits’ or ‘savings’ products, they are unregulated and are not the same as bank deposits. They have no protection,” the SFC said in a post.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: Floki Team Responds to Hong Kong Regulator Warning