Hong Kong Police and Financial Watchdog Collaborate to Supervise Crypto Trading Platforms
Hong Kong police and the city’s financial watchdog have joined forces to establish a working group that will oversee crypto trading platforms. This move comes after the crackdown on crypto exchange JPEX by authorities. The Securities and Futures Commission (SFC) announced that the working group was formed following a high-level meeting in September and includes officers from various departments, such as the police’s Commercial Crime Bureau and Cyber Security and Technology Crime Bureau, as well as the SFC’s Enforcement Division and Intermediaries Division. The primary objective of this collaboration is to improve coordination, share information on suspicious activities related to virtual asset trading platforms, and assess risks.
Enhancing Intelligence Exchange and Collaboration
Eve Chung, an assistant commissioner of police, emphasized the importance of this new working group in facilitating intelligence exchange and joint collaboration. She stated that it would help address the challenges arising from virtual asset trading platforms and better protect the general public of Hong Kong.
Crackdown on JPEX and Arrests
The establishment of this task force follows the crackdown on JPEX last month, which resulted in the arrest of at least 20 individuals. This operation, known as “tieguan” or “iron gate,” aimed to dismantle illicit activities associated with the exchange. Additionally, local media reports indicate that authorities have requested telecoms providers to block online access to JPEX.
SFC’s Warning and Disclosure
The SFC previously issued a warning regarding false or misleading statements made by crypto influencers and JPEX on social media. These statements falsely suggested that JPEX had applied for a virtual asset trading license in Hong Kong. Consequently, the SFC disclosed information about legitimate crypto license applicants and published a list of suspicious crypto platform operators following the JPEX investigations.
Hot Take: Collaborative Efforts to Safeguard Crypto Trading in Hong Kong
The collaboration between Hong Kong police and the financial watchdog demonstrates the authorities’ commitment to ensuring the safety and integrity of crypto trading platforms. By establishing a dedicated working group, they aim to enhance coordination, share critical information, and assess risks associated with virtual asset trading. This joint effort is crucial in combating illicit activities, protecting the public, and maintaining the credibility of the crypto industry in Hong Kong. The crackdown on JPEX and subsequent arrests highlight the authorities’ determination to take action against fraudulent practices. Through increased scrutiny and intelligence exchange, Hong Kong aims to foster a secure environment for crypto traders and investors.
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