Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal

Among Hong Kongs principal monetary regulators, the Securities and Futures Commission (SFC), has actually promised to step up efforts to combat unregulated cryptocurrency trading platforms in its jurisdiction.According to a Sept. 25 statement, the SFC stated it would publish a list of all certified, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs) to better assistance members of the general public determine potentially uncontrolled VATPs doing company in Hong Kong.The SFC stated it will also keep a devoted list of “suspicious VATPs,” which will be included in a easily available and popular part of the regulators website.The brand-new procedures being introduced by the SFC to combat uncontrolled VATPs. Source: Hong Kong SFCThe new guidelines come immediately in the wake of the ongoing JPEX crypto exchange scandal, an affair that regional media outlets are describing as one of the worst cases of monetary scams to ever hit the area. JPEX stands accused of promoting its services to Hong Kong residents despite not having actually requested a license in the country.Speaking at a Sept. 25 press instruction on the brand-new guidelines and the JPEX scandal, Christopher “Kit” Wilson, director of enforcement at the SFC, described that due to “evasive” behavior from stakeholders and unsatisfactory actions to ask for info, JPEX was placed on the alert list in July 2022. Wilson shared that the SFC then introduced a complicated examination involving multiple celebrations across a variety of jurisdictions, which intensified in April 2023 after the organization received its very first official investor complaint.”In June 2023, an AMLO (Anti-Money Laundering Ordinance) came into complete result. At that time enforcement started a more official fraud examination. As a result of that examination we provided a formal caution on Sept. 13 and referred the matter to the cops.”The financial fallout from JPEX is estimated to have actually reached around $178 million at the time of publication, with local police having actually received more than 2,200 grievances from affected users of the exchange.An overall of 11 individuals, including crypto influencers, YouTubers and workers of the allegedly deceitful crypto exchange, have been taken into custody for questioning.Related: Troubled crypto exchange JPEX makes an application for deregistration in AustraliaIn a statement, the SFC stated the resulting fallout from JPEX “highlights the risks of handling unregulated VATPs and the need for appropriate policy to maintain market self-confidence.”The regulators included that they would be dealing with local authorities to develop a dedicated channel for citizens to share information on suspicious activity and potential legal breaches by VATPs, in addition to much better investigating the JPEX event to assist “bring the wrong-doers to justice.”Deposit risk: What do crypto exchanges truly make with your money?