The Hong Kong State Computer Incident Response Service has announced to citizens that the NFT space and the metaverse are fertile ground for fraud.
The Service Clearinghouse (HKCERT) has issued a warning that as interest in digital assets grows and the industry develops, attackers are increasingly willing to use them to steal sensitive information.
However, affected users have no legal remedies. HKCERT plans to pay more attention this year to security issues related to the purchase of collectible tokens:
“Hong Kong has a vibrant community of NFT and metaverse enthusiasts. Regulators are not keeping up with the rapid development of cryptocurrencies. As a result, artists are using cryptocurrencies to sell their work in the form of NFTs, and countless cartoon avatars are attracting the attention of people who are willing to pay millions of dollars for them.”
According to the center, last year there were 7725 incidents related to information security. 48% of cases were related to phishing, while in 2020 their number was 7% less.
Recently, the Hong Kong government has been taking action to tighten its policy on cryptocurrencies. Recently, local authorities introduced a bill providing for special licensing for virtual asset service providers. Earlier this month, the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) banned unqualified investors from investing in cryptocurrency spot ETFs.
