Hong Kong Securities and Futures Commission to Publish List of Suspicious Crypto Trading Platforms

Find out how the Hong Kong Securities and Futures Commission plans to tackle unregulated cryptocurrency trading platforms by publishing a list of suspicious platforms. Learn more about the ongoing JPEX scandal and its impact on the market.

Posted 10 months ago in Security

A visual representation of cryptocurrency trading platforms

The Hong Kong Securities and Futures Commission (SFC) has announced its plans to combat unregulated cryptocurrency trading platforms in the region by publishing a public list of suspicious platforms. The move comes in the wake of the ongoing JPEX scandal, where the crypto exchange has been accused of promoting its services to Hong Kong residents without a proper license. The SFC will also maintain a dedicated list of 'suspicious VATPs' which will be easily accessible on its website. To further ensure market confidence and regulation, the SFC will collaborate with local police to establish a channel for citizens to report suspicious activity and potential legal breaches by VATPs.

Since the introduction of the new VATP licensing regime in Hong Kong, only two cryptocurrency trading platforms have received a license to serve retail customers. The SFC acknowledges the potential benefits offered by cryptocurrencies and digital assets but also highlights the risks including money laundering and investor protection concerns associated with these assets.

The JPEX incident has resulted in a financial fallout of approximately $178 million and has received more than 2,200 complaints from affected users. To address this, authorities have taken custody of 11 individuals, including crypto influencers, YouTubers, and employees of the allegedly fraudulent crypto exchange, for questioning and investigation.

Last updated 9/24/2023, 11:06:54 PM


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