The Hong Kong Police Force and Securities and Futures Commission Collaborate on Crypto Crimes
The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have joined forces to establish a working group focused on tackling illicit activities in the crypto exchange sector. The move comes in response to ongoing arrests and developments related to the Dubai-based JPEX exchange.
On September 28, the SFC met with the HKPF, and just days before this meeting, 11 individuals were detained for questioning regarding their potential involvement in the JPEX scandal. The SFC has accused the exchange of operating without a license while promoting its services in the region.
Enhancing Monitoring and Investigation of Illegal Activities
The newly formed working group aims to strengthen monitoring and investigation efforts against illegal activities carried out by Virtual Asset Trading Platforms (VATPs). Its objectives include sharing information on suspicious activities, assessing risks associated with suspicious exchanges, and collaborating on investigations.
Hong Kong regulators had previously expressed their intention to tighten regulations in the crypto market following the JPEX saga.
Composition of the Working Group
The working group consists of officials from the SFC’s enforcement division as well as HKPF officials from its commercial, cybersecurity, financial intelligence, and investigations bureaus.
SFC enforcement director Christopher Wilson stated that deploying resources to combat problematic VATPs and safeguard investor interests is a priority for the regulator. Eve Chung, Assistant Commissioner of Police (Crime) at HKPF, emphasized that the working group plays a crucial role in exchanging intelligence and jointly addressing challenges arising from VATPs to protect Hong Kong’s general public.
List of Licensed Exchanges Published
The SFC has also released a list of all licensed, deemed licensed, closing down, and application-pending exchanges, along with a compilation of “suspicious VATPs.”
Hot Take: Hong Kong Authorities Collaborate to Combat Crypto Crimes
The collaboration between the Hong Kong Police Force and Securities and Futures Commission through the newly formed working group demonstrates their commitment to cracking down on illicit activities in the crypto exchange sector. By sharing information, assessing risks, and collaborating on investigations, the authorities aim to enhance monitoring and investigation efforts against illegal activities carried out by Virtual Asset Trading Platforms. This joint initiative comes in response to ongoing developments surrounding the JPEX scandal and reflects Hong Kong’s determination to tighten regulations in the crypto market. The publication of a list of licensed exchanges further emphasizes the regulators’ focus on transparency and protection for investors.
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