HK regulator vows to intensify crackdown on unregistered crypto platforms

HK regulator vows to intensify crackdown on unregistered crypto platforms

Hong Kong’s financial regulator, the Securities and Futures Commission (SFC) has vowed to step up its efforts to combat unregulated cryptocurrency trading platforms in its jurisdiction

According to a Sept. 25 announcement, the SFC said it will publish a list of all licensed, deemed licensed, closing down and application-pending virtual asset trading platforms (VATPs) to better help members of the public identify potentially unregulated VATPs doing business in Hong Kong. 

Additionally, the SFC said it will issue a dedicated list of “suspicious VATPs” which will be featured in an easily accessible and prominent part of the regulators’ website.

The move comes immediately following the recent JPEX crypto exchange scandal, which is estimated to have a financial fallout of around $178 million. At the time of publication, local police have received more than 2,200 complaints from affected users of the exchange. 

The SFC said the resulting fallout from JPEX “highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence.”

Additionally, the SFC said that it would be working with local police to establish a dedicated channel for citizens to share information on suspicious activity and potential legal breaches by VATPs, as well as better investigating the JPEX incident to help “bring the wrong-doers to justice.”

This is a developing story, and further information will be added as it becomes available.