Hong Kong’s Customs and Excise Department is taking steps to address the money-laundering risks associated with cash-for-crypto shops in the wake of the JPEX scandal. These shops, which operate without licensing or regulatory oversight, have been promoting investment offerings from JPEX, a crypto exchange involved in a $192.7 million fraud. To fill the regulatory gaps exposed by this scandal, Hong Kong regulatory bodies are reviewing options. The Customs and Excise Department aims to combat money laundering and terrorist financing while also protecting investors. They have observed an increase in crypto money laundering cases and plan to enhance international cooperation to combat this issue. The department will sign a memorandum of cooperation with its South Korean counterpart and plans to assume the role of vice-chair for the Asia-Pacific region at the World Customs Organization. The JPEX scandal has damaged investor trust in Hong Kong’s crypto market, and the police investigation into the matter is ongoing.

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Information	Details
Geography	Asia
Countries	🇭🇰
Sentiment	negative
Relevance Score	1
People	Louise Ho Pui-shan
Companies	JPEX crypto exchange, Securities and Futures Commission (SFC), Bitrace, Hong Kong’s Customs and Excise Department, World Customs Organization
Currencies	Tether
Securities	None