SFC Warns Against Unregulated Floki and Tokenfi Crypto Staking Programs

Hong Kong Watchdog Cautions Investors

The Securities and Futures Commission (SFC) of Hong Kong has issued a public warning to investors regarding the "Floki Staking Program" and "Tokenfi Staking Program." These crypto-related investment products promise high returns but lack the necessary regulatory approval.

Risky Investment Programs

Both the Floki and Tokenfi programs, which are part of the Floki ecosystem, offer cryptocurrency staking services with annualized returns ranging from 30% to over 100%. However, the SFC has not authorized these products for public offering in Hong Kong, putting potential investors at risk.

Understanding Staking

Staking is a process similar to depositing money into a savings account, where investors contribute to blockchain operations. The staked cryptocurrencies are locked up in a project, which then uses them for various operations, such as validating transactions. Despite its popularity, the SFC warns that these arrangements may be considered unauthorized collective investment schemes.

Lack of Authorization and Clarity

The SFC's investigation revealed that the administrator of both programs failed to demonstrate how they could achieve their high annualized return targets. As a result, the SFC included the Floki and Tokenfi Staking Programs in its Suspicious Investment Products Alert List.

The Floki team has acknowledged the concerns raised by the SFC. In their weekly recap live spaces on the X, they addressed the issue of the programs' performance and admitted a lack of clarity regarding their campaign's continuation in Hong Kong. They assured investors of their commitment to comply with local regulations.

Investor Caution

In addition to the risk of participating in unregulated schemes, the SFC warns investors about the allure of "too-good-to-be-true" returns. These investments could result in a total loss, with minimal protection under the Securities and Futures Ordinance (SFO).

The SFC is prepared to take legal action against any breach of the law, including the promotion of unlicensed collective investment schemes.

Share your thoughts and opinions about the SFC's warning regarding Floki's staking products in the comments section below.

Frequently Asked Questions

Which type is best for an IRA?

It is crucial to find the right IRA for your needs. You should consider whether you wish to maximize tax deferred growth, minimize taxes now, pay penalties later or avoid taxes altogether.

The Roth option can be a smart choice if your retirement savings are limited and you don't have any other investments. It also makes sense if you continue working after age 59 1/2 and expect to pay income taxes on any accounts withdrawals.

Traditional IRAs are more suitable if you intend to retire young. However, you will most likely owe taxes on any earnings from those funds. But if you're going to work well past age 65, the Roth IRA might make more sense since it allows you to withdraw some or all of your earnings without paying taxes.

What Is a Precious Metal IRA?

Precious Metals are a great way to invest in retirement funds. Precious metals have been around since Biblical times and still hold their value today. The best way to protect yourself from inflation is to invest in precious metallics such as platinum, silver and gold.

Many countries also permit citizens to store money in foreign currencies. You can buy gold bars in Canada, and then keep them at the home. Then, you can buy gold bars in Canada and sell them for Canadian dollars when your family is home.

This is a quick and easy way of investing in precious metals. It is particularly useful for those who live outside North America.

Which type of IRA can be used to store precious metals?

Many financial institutions and employers offer an individual retirement account (IRA) as an investment option. A IRA is a way to make money and allow it to grow tax-deferred, until you withdraw it.

An IRA allows you to save taxes and pay them later when you retire. This means more money deposited into your retirement plan today versus having to pay taxes on that money tomorrow.

An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. You can face penalties if you withdraw funds before the deadline.

You can also make additional contributions to your IRA after age 50 without penalty. If you choose to take withdrawals from your IRA during retirement, you'll owe income taxes and a 10% federal penalty.

A 5% IRS penalty is applicable to withdrawals made before the age of 59 1/2. For withdrawals made between the age of 59 1/2 & 70 1/2, a 3.4% IRS penalty will apply.

An IRS penalty of 6.2% applies to withdrawals above $10,000 per year.

How much money can a gold IRA earn?

The answer is yes, but not as much as you think. It all depends upon how much risk you are willing and able to take. You could have $1 million if you're willing to invest $10,000 each year for 20 years. However, if you have all your eggs in one place, you could lose everything.

You need to diversify your investments. Inflation can make gold perform well. You want to make investments in an asset class that rises with inflation. Stocks excel at this because they rise with increased profits. This is also true with bonds. They pay interest every year. They're very useful during periods of economic growth.

But what happens when there isn't any inflation? In times of deflation, stocks are more valuable than bonds. Investors should not put all of their savings in one investment such as a stock mutual fund or bond.

Instead, they should consider investing in a mixture of different types and funds. They could invest in stocks or bonds. Or they could invest in both cash and bonds.

This way, they have exposure to both sides of the coin. Inflation and deflation. And they will still see a return over time.


  • Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
  • The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
  • To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
  • You can only purchase gold bars of at least 99.5% purity. (forbes.com)

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How To

Things to Remember: Best Precious Metals Ira, 2022

Precious Metals Ira ranks high among investors as one of their most popular investment options. This article will help you understand what makes this asset class so attractive and how to make wise decisions when investing in precious metals.

Their long-term growth potential is the main draw of these assets. Gold prices have been able to show remarkable returns over the past 200 years, according to historical data. Over the past 200+ years, gold prices rose from $20 to almost $1900 an ounce. The S&P 500 Index was only up by 50%.

During times of economic uncertainty, people consider gold a safety net. People tend to sell stocks when the stock market is in trouble and shift into gold for safety. The safety of gold is also considered an insurance against inflation. Many economists believe in inflation. Accordingly, many economists believe that inflation will always be present. Therefore, physical gold can be considered a way for you to safeguard your savings from future price rises.

However, before you decide to buy precious metals like palladium and gold, as well as platinum, silver or gold, there are several things to be aware of. First, decide whether bullion bars are better than coins. Bullion bars usually come in large amounts (e.g 100 ounces), and are stored away until needed. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.

Second, consider where you want to store your precious materials. Some countries are safer than other. If you are in the US, it might be a good idea to store your precious metals abroad. If you intend to store them in Switzerland, though, you might need to question why.

Finally, you should decide whether you want to invest directly in precious metals or through “precious metals exchange-traded funds” (ETFs). ETFs track the performance of various commodities such as gold and are financial instruments. These are a way to have exposure to precious metals but not necessarily own them.


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