The Hong Kong Securities and Futures Commission (SFC) has teamed up with the Hong Kong Police Force to form a working group to investigate and monitor crypto exchange-related crimes. This comes after the Dubai-based JPEX exchange, a major player in the Hong Kong crypto industry, was involved in a scandal. The SFC revealed this in an October 4 announcement, noting that the group was formed after a meeting with the Hong Kong Police Force on September 28.The group will investigate illicit activities connected to virtual assets trading platforms (VATPs) in Hong Kong, stemming from the ongoing investigation into illegalities surrounding JPEX. The exchange allegedly promoted its services without obtaining an appropriate license from the SFC, resulting in the loss of about $166 million in assets belonging to over 2,086 investors. This has been tagged as the largest fraud case ever recorded in Hong Kong. Following a series of probing, the Police arrested 18 people believed to be connected to the JPEX scandal.The JPEX exchange halted crypto assets transactions on its Hong Kong platform on September 18, citing unfair treatment by relevant institutions and negative news that caused its liquidity partners to freeze its funds.Previously, a former SFC official, Angelina Kwan, said Hong Kong may tighten virtual assets market regulations. The new working group will monitor the illegalities of VATPs and report all shady activities. In addition, it will assess the risks and threats related to the identified suspicious exchanges and participate in investigations. The group comprises officials from the Hong Kong Police’s commercial, cybersecurity, and financial intelligence and investigation departments, as well as from the SFC’s enforcement division.Christopher Wilson, the SFC’s enforcement director, commented on the development, saying the agency is committed to deploying resources in fighting troublesome virtual assets trading platforms and protecting investors. The HKPF’s assistance commissioner, Eve Chunge Wing-man, said the joint group would proactively share intelligence and respond to issues related to VATPs, ensuring the safety of Hong Kong investors and the general public.The SFC has published a list of licenses, unlicensed and suspicious VATPs, including those about to close down, as well as virtual assets trading platforms (VATPs) whose applications are pending approval from the SFC. The regulator reminded investors that all entities on the list of VATP applicants have yet to obtain licenses from the SFC and may need to be more compliant with the agency’s requirements. It also warned investors about the risks of trading cryptocurrencies on unregulated platforms, as they may lose their entire investments if such a platform ceases operation, collapses, or suffers hack or fund misappropriation.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇭🇰 |
| Sentiment | negative |
| Relevance Score | 8 |
| People | Christopher Wilson, Angelina Kwan, Eve Chunge Wing-man |
| Companies | Securities and Futures Commission (SFC), JPEX exchange, HKPF Commercial, Cybersecurity, Financial Intelligence and Investigation Departments, SFC Enforcement Division, Hong Kong Police Force |
| Currencies | None |
| Securities | None |
