On January 29, 2024, Floki, a leading cryptocurrency platform, responded to the Securities and Futures Commission (SFC) of Hong Kong’s inclusion of its staking programs with TokenFi on a list marked as “suspicious” due to their high Annual Percentage Yield (APY). In a statement released on January 30, 2024, Floki addressed the concerns raised by the SFC and emphasized its commitment to upholding all legal compliances and maintaining a positive relationship with regulatory bodies.
Floki, a digital operation that transcends physical borders, has been working closely with legal counselors since December 2023 to ensure that its services align with regulatory standards, particularly in regards to its staking programs. Despite the challenges of operating in a constantly evolving regulatory landscape, Floki has taken decisive steps to mitigate concerns in jurisdictions where the regulatory framework does not specifically cover or cater to staking programs.
In response to the SFC’s apprehensions, Floki has implemented clear disclaimers on its staking sites to notify Hong Kong citizens of their ineligibility to participate. Additionally, precautions have been taken to actively block Hong Kong residents from accessing and participating in these staking programs. Floki has also suspended an offline marketing drive in Hong Kong that was expected to commence in December 2023.
It is important to clarify the source of high APY and its sustainability within Floki’s staking program. The program does not mint new tokens, which circumvents inflation and incentivizes stakers with $TOKEN, the native token of Floki’s affiliate, TokenFi. This high APY primarily comes from two factors: a fair distribution of TokenFi supply to Floki stakers and market-driven volatility tied to the value of $TOKEN.
Floki emphasizes that its users are thoroughly informed about the functionality of the staking rewards and highlights the decentralized framework of its platform. This ensures user autonomy over their assets, with the system continuing independently of the team’s involvement.
Floki also expressed its respect for regulators and its willingness to continue engaging with them to address any concerns they may have. However, the company disagrees with the decision to single out their staking programs solely based on their high APY, which is influenced by market forces.
In addition, Floki’s sister token, TokenFi, is an all-in-one tokenization platform that enables users to launch tokens or tokenize real-world assets without any coding expertise. TokenFi is committed to revolutionizing the trillion-dollar tokenization industry by offering a user-friendly interface. For more information, visit their website at https://tokenfi.com and follow them on Twitter at https://twitter.com/tokenfi.
In conclusion, Floki remains dedicated to maintaining compliance with regulatory standards and fostering a positive relationship with regulatory bodies. The company will continue to take necessary steps to address any concerns and ensure the integrity of its operations. The full statement can be found on Medium.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.