Hong Kong Police and SFC Launch New Task Force Post-JPEX Scandal
In a bid to tighten scrutiny on illicit activities associated with virtual asset trading platforms (VATPs), Hong Kong authorities have set up a specialized task force.
According to a recent statement, this working group is a joint move by the Hong Kong police and the city’s financial watchdog, the Securities and Futures Commission (SFC). The establishment comes in the wake of a major crackdown on the crypto exchange JPEX.
The authorities arrested at least 20 people in an action dubbed “tieguan” or “iron gate”. The SFC had warned that crypto influencers and JPEX had made false or misleading statements on social media, suggesting that the firm had applied for a virtual asset trading license in Hong Kong. This led to the SFC disclosing crypto license applicants and publishing a list of suspicious crypto platform operators.
The new task force comprises officers from various police departments and divisions of the SFC. The officers hail from the police’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, Financial Intelligence and Investigations Bureau, the SFC’s Enforcement Division, and Intermediaries Division.
The primary aim of this working group is to enhance coordination and facilitate information sharing on suspicious activities related to VATPs. Furthermore, it has been tasked with assessing risks associated with these activities to ensure better protection for the general public of Hong Kong.
Assistant Commissioner of Police, Eve Chung, has stated that the working group is instrumental in exchanging critical intelligence and jointly responding to challenges posed by VATPs.
Director of SFC enforcement, Christopher Wilson, said the regulator looks forward to deploying its resources to combat problematic VATPs and protect investor interests.
