- Hong Kong SFC announces plans to release a list of suspicious crypto trading platforms.
- The announcement comes after the controversial JPEX scandal, possibly “one of the largest” cases of fraud” in the region.
- These are part of the efforts of the Hong Kong SFC to make the crypto market safer and transparent.
On Monday, September 24, Hong Kong’s securities regulator, the Securities and Futures Commission (SFC) announced its plans to unveil a comprehensive “blacklist” of suspicious cryptocurrency trading platforms.
In response to the JPEX incident that may become the largest fraud case in Hong Kong history, the Hong Kong SFC held a press conference today to announce a special blacklist of suspicious cryptocurrency trading platforms, and work with the police to take legal action against…— Wu Blockchain (@WuBlockchain) September 25, 2023
This comprehensive list, which is to be disclosed due to public demand, is comprised of all licensed, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs). The regulator’s chief executive officer Julia Leung Fung-yee, however, warned in a press conference on Monday that being an applicant does not warrant that the companies are fully compliant with the SFC’s regulations.
The announcement from Hong Kong’s securities regulator comes days after the ongoing JPEX scandal where the platform was allegedly said to have offered its services to retain investors in Hong Kong without a license.
According to a report from the SFC, the platform had suspended trading and imposed a high withdrawal fee on those seeking to withdraw their money. As per reports from Saturday, September 23, up to 2305 complaints have been registered against the platform, with losses amounting to at least HK 1.43 billion (US$182 million).
With more complaints expected to register, local media outlets are highlighting the case as “one of the largest fraud cases” in the region’s history. Several people have been arrested by the Hong Kong police in connection to the JPEX case, including crypto influencers Joseph Lam (Lin Zuo) and Chan Wing-yee.
The crackdown is part of the regulator’s steps to bring safety and transparency to the often-vexing cryptocurrency market. Moreover, the SFC has previously mandated all crypto trading platforms under its jurisdiction to be licensed.
Seemingly, only two cryptocurrency trading platforms, OSL Digital Securities Limited and Hash Blockchain Limited, are licensed currently. This is in addition to four others (HKVAX, HKBitEx, Hong Kong BGE Limited, and Victory Fintech Company Limited) who have reportedly applied for licenses.
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