Hong Kong's police force and the special administrative region's leading securities regulator, the Securities and Futures Commission (SFC) have established a joint task force to monitor suspicious activity on crypto exchanges.
A statement published by the SFC yesterday says the task force was established after a high-level meeting between the two authorities on September 28. Its main purpose is to enhance their collaboration in monitoring suspicious and illegal activities on Virtual Asset Trading Platforms (VATPs), or crypto exchanges.
The task force includes members of the police force's Commercial Crime, Cyber Security Financial Intelligence, and Investigations divisions, together with representatives from the SFC’s Enforcement and Intermediaries divisions.
Crypto Exchange Updates Marketing and Fees After Hong Kong Regulator Warning
Hong Kong’s top financial watchdog, the Securities and Futures Commission (SFC) has issued a warning against crypto exchange JPEX. According to a report in South China Morning Post, the SFC claims the platform showcases “suspicious features” and doesn’t have the necessary licensing to legally operate in Hong Kong. The territory recently passed a landmark list of crypto regulations, bidding to become a crypto hub in the region. It demands, among other legal requirements, a virtual asset trading p...
The stated aim of the working group is to share information on suspicious and illegal exchange activities, develop a mechanism to assess the risk of suspicious exchanges and collaborate and integrate their agencies' activities in related investigations.
Hong Kong clamps down post-JPEX
Hong Kong's new task force comes as the city-state wrangles with the recent JPEX incident: a case of suspected fraud involving a Dubai-based crypto exchange operating in Hong Kong without licensing.
There are thought to be at least 2,305 victims of the incident, who collectively have been defrauded of HK$1.43 billion ($182.9 million), making JPEX one of the largest cases of financial fraud in Hong Kong history.
Hong Kong Financial Watchdog to Bring JPEX 'Wrong-Doers to Justice'
In a statement today, Hong Kong’s Securities and Futures Commission (SFC) unveiled a series of new measures aimed at enhancing transparency and security in the cryptocurrency space. The regulator's initiative includes the publication of a comprehensive list containing licensed, deemed-licensed, closing down, and application-pending virtual asset trading platforms (VATPs). The move comes in the wake of the ongoing JPEX crypto exchange scandal and hopes to assist the general public in identifying...
On September 25, Hong Kong’s Securities and Futures Commission (SFC) announced new measures to enhance transparency and security in the cryptocurrency space.
The measures include the publication of a comprehensive list containing licensed, deemed-licensed, closing down, and application-pending VATPs.
All this comes in wake of a sudden surge in cryptocurrencies in the city. According to a recent report by blockchain data platform Chainalysis, recent inflows to Hong Kong have rivaled that of mainland China over the past year, despite hosting only 0.5% of the latter’s population.
In 2021, China enacted a sweeping crackdown on crypto mining and trading activities within its borders, but Hong Kong's more welcoming stance may prompt mainland policymakers to adopt a softer stance, says Chainalysis.
