- Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), will publish a list of licensed and unlicensed virtual asset trading platforms (VATPs).
- The SFC will also create a dedicated list of “suspicious VATPs” to inform the public and help identify potentially unregulated platforms.
- This move comes in response to the JPEX crypto exchange scandal, where the exchange was accused of promoting its services without the necessary licenses.
- The fallout from JPEX has led to significant financial losses and numerous complaints from affected users.
- Eleven individuals, including crypto influencers and employees of the fraudulent exchange, have been taken into custody for questioning.
- The SFC emphasizes the need for proper regulation to maintain market confidence and protect investors.
- The regulator will collaborate with local police to establish a channel for citizens to report suspicious activity and potential legal breaches by VATPs.
- Since June 1, when Hong Kong introduced new VATP licensing, only two platforms have received licenses to provide services to retail customers.
- The SFC acknowledges the potential benefits of cryptocurrencies and digital assets but also recognizes the associated risks, including money laundering and investor protection concerns.
Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal
