Hong Kong Authorities Launch Special Task Force to Counteract Illegal Crypto Activities
Summary:
The Securities and Futures Commission (SFC) along with the Hong Kong Police Force (HKPF) have created a dedicated task force to counteract illegal operations in cryptocurrency exchanges. The decision came following the JPEX exchange scandal, prompting the Hong Kong regulators to consider implementing stricter regulations for the crypto market. The task force, comprised of officials from varying bureaus, aims to improve supervision, exchange information on suspicious activities, assess the involved risks and collaborate on investigations to safeguard investor interests and the public.
The Securities and Futures Commission (SFC) and the Hong Kong Police Force (HKPF) have launched a specialized task force focused on addressing illegal cryptocurrency exchange activities. The SFC announced the formation of this group in a statement on October 4, after a meeting with the HKPF on September 28. This decision comes in the wake of continued arrests and unfolding events related to the Dubai-based JPEX exchange. Prior to the meeting, 11 individuals were held for interrogation concerning their potential involvement in the JPEX controversy. The SFC has accused the firm of advertising its services in the area without a proper license. The main goal of this newly-formed task force is to improve supervision and investigation of unlawful operations by Virtual Asset Trading Platforms (VATPs). The group will exchange information about suspicious activities, evaluate the risks associated with dubious exchanges, and collaborate on investigations. The issue with JPEX led the Hong Kong regulators to consider stricter regulations for the crypto market. The task force includes officials from the SFC's enforcement division and the HKPF's commercial, cybersecurity, financial intelligence, and investigations bureaus. Christopher Wilson, the SFC enforcement director, has mentioned that the regulator is eager to use its resources to tackle "problematic VATPs and safeguard investor interests." HKPF's Assistant Commissioner of Police (Crime), Eve Chung, expressed that the task force plays a crucial role in sharing important information and jointly addressing "challenges arising from VATPs, to better protect Hong Kong's populace." Following this, the SFC released a list of fully licensed, pending license, closing down, and deemed licensed exchanges, along with a roster of "suspicious VATPs.
Published At
10/5/2023 1:37:16 AM
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