- The Hong Kong Police Force and Securities and Futures Commission have created a crypto-focused task force.
- The task force will monitor suspicious activities of crypto exchanges within the region.
- The authorities said the collaboration will help combat “problematic” crypto exchanges and protect investors.
Authorities in Hong Kong have set up a crypto-focused task force to monitor the activities of crypto exchanges in the country, according to an official statement. The joint collaboration between the government agencies comes in the wake of the JPEX scandal.
In particular, the task force is a collaboration between Hong Kong’s Securities and Futures Commission (SFC) and the police force. The group will work to detect suspicious activities at crypto exchanges.
According to the SFC, the group was formed after the regulator met with the Hong Kong Police Force (HKPF). Prior to the meeting, the police had been arresting individuals in connection with the JPEX incident.
Authorities allege the Dubai-based crypto exchange operated in Hong Kong without a license and defrauded investors of HK$1.6 billion ($204 million). So far, Bloomberg has reported that over 20 people have been arrested as part of a probe.
The task force comprises officials from SFC’s enforcement and intermediaries division. Officials from HKPF’s commercial crime, cyber security, technology crime, and financial intelligence and investigations bureau complete the team.
Ms. Eve Chung, the assistant commissioner of police, stated that the task force is looking to better protect the general public of Hong Kong. Chung said, “The implementation of the new platform between the police and the SFC is instrumental to the fast-tracking of vital intelligence exchange and joint collaboration in responses to the challenges arising from [Virtual Asset Trading Platforms] VATPs.”
SFC’s Executive Director of Enforcement, Mr. Christopher Wilson, said that the tie-up between the agencies is needed to combat “problematic VATPS.” He continued that the collaboration would help protect the interests of investors.
According to Bloomberg, the quick reaction of the authorities to the JPEX scandal is to protect the region’s push to be a global home for digital-asset industries. However, that dream has come under threat recently, especially by speculations of decreased autonomy from China.
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