SFC Strengthens Measures Against Unregulated Crypto Platforms Following JPEX Scandal
Summary:
Hong Kong's financial watchdog, the Securities and Futures Commission (SFC), has pledged to intensify measures against unregulated virtual currency trading platforms. This involves publicizing a list of all licensed and application-in-process virtual asset trading platforms (VATPs), as well as creating a separate list of "suspicious VATPs" after the recent JPEX crypto scandal, which affected thousands of users. The SFC also plans to work alongside local law enforcement to establish a platform for the public to report suspicious activities or potential legal breaches by VATPs.
The Securities and Futures Commission (SFC), Hong Kong's financial watchdog, has pledged to increase its measures against unregulated virtual currency trading platforms in the region. In a statement made on 25th September, the SFC revealed plans to publicize a comprehensive list of all licensed and application-in-process, closing down and presumed licensed virtual asset trading platforms (VATPs) to enable the public to distinguish potential unregulated VATPs operating in Hong Kong. Moreover, the regulator intends to issue a select list of "dubious VATPs", which will be distinctly visible on the regulatory body's website.
This decision comes in the wake of the recent controversy involving the JPEX crypto exchange, believed to have a financial impact of nearly $178 million. As of now, local law enforcement has received over 2,200 complaints from users affected by the exchange. Following the fallout from JPEX, the SFC emphasized the perils of engaging with unregulated VATPs and stressed the need for stringent regulation to uphold market trust.
The SFC also noted plans to partner with local law enforcement to create a specialized avenue for citizens to report suspicious transactions and potential legal violations by VATPs. This initiative will enhance investigations into the JPEX affair to ensure that offenders are held accountable.
This story is evolving, and more information will be added as it becomes known.
Published At
9/25/2023 4:18:27 AM
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