In a transfer
to bolster retail traders’ safety, Hong Kong’s Securities and Futures
Fee (SFC) has introduced a collection of recent measures this week. These
initiatives come on the heels of the JPEX crypto alternate debacle, which
uncovered vulnerabilities within the metropolis’s regulatory framework for digital belongings.
The SFC’s new measures purpose to boost transparency, enhance public consciousness,
and tighten rules round crypto buying and selling platforms.
JPEX Blowup Prompted
Response from Hong Kong Regulator
In June
2023, Hong Kong opened as much as retail cryptocurrency buying and selling, considerably
stress-free the nation’s present guidelines. Nevertheless, the variety of licensed
platforms that might present these companies stays small, a reality exploited by
different, unregulated entities to draw new prospects. One such alternate was
JPEX, which is now going through severe points with the withdrawal of investor funds.
To fight
the disinformation, the SFC plans to publish a complete listing of licensed Digital
Asset Buying and selling Platforms (VATPs) on its web site. This listing will embody presently
licensed platforms, these within the software course of, and entities which have
been ordered to close down or are deemed suspicious. The regulator believes this
clear strategy will assist traders resolve which platforms to have interaction with.
📰Hong Kong to Reveal Crypto License Candidates Submit-JPEX Investigation
In response to public demand and following the JPEX probe, Hong Kong’s Securities and Futures Fee (SFC) will disclose a listing of all crypto alternate license candidates.
This transfer goals to spotlight… pic.twitter.com/nwo215N81v
— SourceFeed (@SourceFeed_) September 25, 2023
As well as
to enhancing transparency, the SFC is launching a public marketing campaign to teach
folks on defending themselves towards fraud. The fee can be dedicated
to investigating and prosecuting unlawful platforms. To this finish, the SFC is
ramping up its intelligence-gathering efforts on companies associated to digital
belongings.
“The
SFC will, inside its statutory powers, proceed to strengthen its intelligence
gathering course of in the direction of totally different companies associated to digital belongings. It
will proceed to take follow-up and enforcement actions towards suspicious
VATPs which will have violated the regulation, and refer instances to the Police when
essential,” the SFC commented
within the official press launch.
The
deliberate actions offered by SFC have been summarized within the desk under:
|
Motion |
Description |
|
Publication |
The SFC will publish numerous lists |
|
Enhanced Listing of Suspicious VATPs |
The SFC will subject a devoted |
|
Public Consciousness |
The SFC and the IFEC will launch a |
|
Strengthening |
The SFC will proceed to |
Replace on JPEX Case
Over the
weekend, 11 people linked to the JPEX case have been arrested, and
authorities are looking for Interpol help to apprehend the alternate’s
leaders. Some cryptocurrencies linked to the fraud have additionally been frozen. Extra
than 1,400 complaints have been filed towards the buying and selling platform, indicating
losses exceeding HKD 1 billion, or roughly $127.9 million.
Moreover,
Finance Magnates disclosed final Monday that native authorities detained
monetary influencer Joseph Lam Chok as a result of his on-line promotion of the
troubled alternate. The arrest occurred just some hours following the
alternate’s newest points.
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
The SFC
acknowledged that it could proceed to assessment the regulatory panorama in Hong Kong
and take well timed measures in response to new market developments.
“Adhering
to the ‘identical enterprise, identical dangers, identical guidelines’ precept, the SFC will work
with the HKSAR Authorities to often assessment the regulatory regime in Hong
Kong and contemplate well timed measures in mild of recent market developments. These
measures could embody regulation of VA-related companies aside from the VATPs,”
the regulator added.
The SFC has
been proactive in figuring out the potential advantages and dangers related to
digital finance and digital asset actions. Underneath the Anti-Cash Laundering
and Counter-Terrorist Financing Ordinance, which got here into full impact on 1
June 2023, the SFC has closed gaps in its licensing and supervision powers over
VATPs. The regulator has imposed stringent necessities to make sure investor
safety, together with enhanced due diligence and sturdy governance measures.
In a transfer
to bolster retail traders’ safety, Hong Kong’s Securities and Futures
Fee (SFC) has introduced a collection of recent measures this week. These
initiatives come on the heels of the JPEX crypto alternate debacle, which
uncovered vulnerabilities within the metropolis’s regulatory framework for digital belongings.
The SFC’s new measures purpose to boost transparency, enhance public consciousness,
and tighten rules round crypto buying and selling platforms.
JPEX Blowup Prompted
Response from Hong Kong Regulator
In June
2023, Hong Kong opened as much as retail cryptocurrency buying and selling, considerably
stress-free the nation’s present guidelines. Nevertheless, the variety of licensed
platforms that might present these companies stays small, a reality exploited by
different, unregulated entities to draw new prospects. One such alternate was
JPEX, which is now going through severe points with the withdrawal of investor funds.
To fight
the disinformation, the SFC plans to publish a complete listing of licensed Digital
Asset Buying and selling Platforms (VATPs) on its web site. This listing will embody presently
licensed platforms, these within the software course of, and entities which have
been ordered to close down or are deemed suspicious. The regulator believes this
clear strategy will assist traders resolve which platforms to have interaction with.
📰Hong Kong to Reveal Crypto License Candidates Submit-JPEX Investigation
In response to public demand and following the JPEX probe, Hong Kong’s Securities and Futures Fee (SFC) will disclose a listing of all crypto alternate license candidates.
This transfer goals to spotlight… pic.twitter.com/nwo215N81v
— SourceFeed (@SourceFeed_) September 25, 2023
As well as
to enhancing transparency, the SFC is launching a public marketing campaign to teach
folks on defending themselves towards fraud. The fee can be dedicated
to investigating and prosecuting unlawful platforms. To this finish, the SFC is
ramping up its intelligence-gathering efforts on companies associated to digital
belongings.
“The
SFC will, inside its statutory powers, proceed to strengthen its intelligence
gathering course of in the direction of totally different companies associated to digital belongings. It
will proceed to take follow-up and enforcement actions towards suspicious
VATPs which will have violated the regulation, and refer instances to the Police when
essential,” the SFC commented
within the official press launch.
The
deliberate actions offered by SFC have been summarized within the desk under:
|
Motion |
Description |
|
Publication |
The SFC will publish numerous lists |
|
Enhanced Listing of Suspicious VATPs |
The SFC will subject a devoted |
|
Public Consciousness |
The SFC and the IFEC will launch a |
|
Strengthening |
The SFC will proceed to |
Replace on JPEX Case
Over the
weekend, 11 people linked to the JPEX case have been arrested, and
authorities are looking for Interpol help to apprehend the alternate’s
leaders. Some cryptocurrencies linked to the fraud have additionally been frozen. Extra
than 1,400 complaints have been filed towards the buying and selling platform, indicating
losses exceeding HKD 1 billion, or roughly $127.9 million.
Moreover,
Finance Magnates disclosed final Monday that native authorities detained
monetary influencer Joseph Lam Chok as a result of his on-line promotion of the
troubled alternate. The arrest occurred just some hours following the
alternate’s newest points.
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
The SFC
acknowledged that it could proceed to assessment the regulatory panorama in Hong Kong
and take well timed measures in response to new market developments.
“Adhering
to the ‘identical enterprise, identical dangers, identical guidelines’ precept, the SFC will work
with the HKSAR Authorities to often assessment the regulatory regime in Hong
Kong and contemplate well timed measures in mild of recent market developments. These
measures could embody regulation of VA-related companies aside from the VATPs,”
the regulator added.
The SFC has
been proactive in figuring out the potential advantages and dangers related to
digital finance and digital asset actions. Underneath the Anti-Cash Laundering
and Counter-Terrorist Financing Ordinance, which got here into full impact on 1
June 2023, the SFC has closed gaps in its licensing and supervision powers over
VATPs. The regulator has imposed stringent necessities to make sure investor
safety, together with enhanced due diligence and sturdy governance measures.
