Securities and Futures Commission (SFC), a Hong Kong-based financial authority, has taken up the decision to tackle unregulated cryptocurrency trading exchanges under its administration, as stated by Cointelegraph.
According to Cointelegraph, on September 25, 2023, SFC stated that it would unveil the names of all unauthorised virtual asset trading platforms (VATPs). From what it’s understood, this step aims to enable public users to recognise unregulated VATPs functional in Hong Kong. It’s believed that the “suspicious VATPs’” directory will be available on the regulators’ website.
Based on Cointelegraph’s data, the new guidelines have come into place on account of the current JPEX crypto exchange scandal. Reportedly, JPEX has been charged with promoting operations in Hong Kong in the absence of a licence for it. Christopher “Kit” Wilson, director of enforcement, SFC, mentioned that on account of “evasive” actions with regard to stakeholders and disagreeable answers towards data requests, JPEX was put on the alert list in July, 2022.
“In June 2023, an AMLO (Anti-Money Laundering Ordinance) came into full effect. At that time enforcement commenced a more formal fraud investigation. As a result of that investigation we issued a formal warning on Sept. 13 and referred the matter to the police,” Wilson specified.
Moreover, Cointelegraph noted that JPEX’s financial implications resulted in an estimated amount worth nearly $178 million, with local police being at the receiving end of over 2,200 allegations from impacted customers. Sources suggest that 11 people, along with JPEX’s employees, crypto influencers and YouTubers, have been summoned by the police for interrogation.
(With insights from Cointelegraph)
