Hong Kong Forms Task Force to Monitor and Investigate Crypto Exchanges
In response to the recent crypto exchange scandal at JPEX, Hong Kong has established a task force to monitor and investigate illegal activities related to virtual-asset trading platforms. The task force includes representatives from the city’s Securities and Futures Commission (SFC) as well as law enforcement officials from various bureaus.
The JPEX saga has raised concerns about Hong Kong’s reputation as a regional crypto and fintech hub. However, the formation of this task force is seen as a proactive step to restore confidence in the new regulatory framework for crypto assets that was introduced earlier this year.
Protecting Hong Kong Public
Assistant police commissioner Eve Chung emphasized that the task force is crucial for exchanging vital intelligence and collaborating on responses to challenges arising from virtual asset trading platforms. Its main objective is to protect the general public of Hong Kong.
In September, the SFC reached out to influencers, opinion leaders, and OTC outlets, urging them to stop promoting JPEX. This was followed by a crackdown on influencers associated with the fraudulent exchange.
JPEX Dividends Plan
JPEX has faced further controversy with its plan to convert users’ assets into shareholder dividends that can only be claimed after two years. The company claims this move will raise cash flow and retain investors. According to reports, users will receive dividends based on their stake in various forms after two years.
This week, JPEX announced that 68% of users voted in favor of the dividends plan through a referendum it conducted. Meanwhile, another suspect linked to the case has been arrested and his Porsche has been impounded by the police.
Hot Take: Restoring Trust in Hong Kong’s Crypto Industry
The establishment of the task force in Hong Kong reflects the government’s commitment to restore trust in the crypto industry and protect investors. By actively monitoring and investigating illegal activities related to virtual-asset trading platforms, Hong Kong aims to strengthen its reputation as a safe and compliant jurisdiction for conducting business in the crypto sector.
With the recent JPEX scandal posing a threat to Hong Kong’s ambitions of becoming a regional crypto hub, this task force is a significant step towards addressing concerns and ensuring the integrity of the market. By taking proactive measures, Hong Kong demonstrates its commitment to maintaining a transparent and secure environment for crypto trading.
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