In response to the ongoing crypto scandal in Hong Kong involving the JPEX crypto exchange, a collaborative effort has been initiated. This joint endeavor brings together the Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC), establishing a dedicated crypto-focused task force to tackle illicit crypto exchange activities.
In a statement released on October 4th, the SFC revealed that this alliance was formed following a meeting held on September 28th with the HKPF. This development comes in the midst of ongoing arrests and evolving events connected to the Dubai-based JPEX exchange.
Just prior to this pivotal meeting, 11 individuals were apprehended for questioning regarding their potential involvement in the JPEX scandal. The SFC has accused the firm of promoting its services within the region without the necessary license.
The primary objective of this collaborative working group is to elevate the level of monitoring and investigation concerning illegal activities carried out by Virtual Asset Trading Platforms (VATPs). They will actively exchange information regarding suspicious activities, conduct risk assessments of dubious exchanges, and engage in joint investigations.
Hong Kong’s regulatory authorities had previously signaled their intention to reinforce regulations within the crypto market in response to the JPEX saga.
Comprising officials from both the SFC’s enforcement division and the HKPF’s commercial, cybersecurity, financial intelligence, and investigations bureaus, this partnership aims to deploy resources effectively in combating “problematic VATPs” and safeguarding the interests of investors.
Eve Chung, Assistant Commissioner of Police (Crime) at HKPF, emphasized the crucial role of the working group in sharing intelligence and jointly addressing challenges arising from VATPs, with the ultimate goal of enhancing public protection in Hong Kong.
The SFC has also taken the step of publishing a comprehensive list, encompassing licensed, deemed licensed, closing down, and application-pending exchanges, as well as a roster of “suspicious VATPs” for transparency and vigilance.
