Key Takeaways
Hong Kong’s Securities and Futures Fee (SFC) has offered particulars on its investigation into the unlicensed digital asset buying and selling platform JPEX.
Over 2,000 individuals have reported being defrauded by JPEX, involving greater than HKD 1.4 billion.
SFC CEO Leung Fung-yee emphasizes that the incident is not going to change Hong Kong’s route in creating a Web3 ecosystem.
Background and Investigation Timeline
The Hong Kong Securities and Futures Fee (SFC) has make clear its investigation into JPEX, an unlicensed digital asset buying and selling platform accused of fraud. The platform has acquired complaints from over 2,000 people, involving belongings exceeding HKD 1.4 billion. The SFC started monitoring JPEX in early 2022, suspecting false claims on its web site and commercials. By July 2022, the platform was placed on a watchlist as a consequence of its evasive responses. Formal investigations have been initiated in June 2023, resulting in an official warning issued on September 13, 2023.
Regulatory Stance
SFC CEO Leung Fung-yee acknowledged that the incident underscores the significance of regulation. She emphasised that Hong Kong’s dedication to creating a Web3 ecosystem stays unchanged. “If there is no such thing as a regulatory system, buyers can’t determine which platforms are comparatively protected and dependable,” Leung added.
Ongoing Police Investigation
When requested about the opportunity of halting or collaborating with abroad monetary regulators to dam JPEX’s asset transfers, Christopher Wilson, Govt Director of the Regulatory Enforcement Division, stated that the police are at the moment main the associated investigation and declined to reveal additional particulars.
Transition Interval Issues
Relating to the 12-month transition interval for digital asset platforms to adjust to new rules, Huang Lexin, head of the SFC’s fintech group, stated that the association is to offer platforms working in Hong Kong affordable time to use for licenses and meet regulatory necessities.
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