Hong Kong steps up monitoring of exchanges after the JPEX affair

Hong Kong has set up a working group for strengthen the monitoring of crypto exchanges. The fall from the platform JPEX a shook the city-state last month.

Hong Kong regulator SEC announced on Wednesday the creation of a task force to strengthen collaboration with local police in monitoring and investigating illegal activities related to digital asset trading platforms.

The working group was established after a high-level meeting of the two parties on September 28, 2023. It includes representatives from the HKPF’s Commercial Crime Bureau, Cybersecurity and Technology Crime Bureau and Financial Intelligence and Investigation Bureau, as well as the FCS’s Enforcement Division and Intermediaries Division,” the regulator wrote on its website.

According to Deputy Commissioner of Police Eve Chung, the initiative is key to accelerating intelligence sharing and joint collaboration in response to challenges arising from crypto exchanges and to better protect investors.

The announcement comes in the wake of the collapse of JPEX. Last month, the Hong Kong crypto exchange announced it was limiting withdrawals as authorities investigated the platform after receiving a number of complaints.

Last we heard, JPEX, which operated without a license, had defrauded investors of up to $200 million, according to the authorities, who have already made around 20 arrests as part of their investigation.

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This summer, Hong Kong created a licensing system for exchanges and a task force to promote web3. The city-state, whose new crypto policy has already won over major players in this nascent industry, also plans to introduce rules for stablecoins in 2024.

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