Hong Kong police, regulator form crypto task force as JPEX saga unfolds

The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have established a crypto-specific task force to deal with illegal crypto exchange activities.

In a statement on October 4, the SFC said the group was formed after the September 28 meeting with the HKPF on arrests and developments related to the Dubai-based JPEX exchange.

Days before the meeting, 11 people were detained for questioning over their possible role in the JPX scandal, in which the SFC alleged that the firm had been promoting its services in the state without a licence.

The purpose of the working group is to strengthen monitoring and investigation of illegal activities on Virtual Asset Trading Platforms (VATPs), exchange information on suspicious activities, assess the risks of suspicious transactions and cooperate in investigations.

Hong Kong regulators have previously indicated they want to tighten crypto market regulations following the JPEX saga.

The team is made up of officials from the SFC's enforcement division and HKPF officials from the Trade, Cyber ​​Security and Financial Intelligence and Investigation Bureaus.

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In a statement, the SFC's director of enforcement, Christopher Wilson, said the regulator was keen to deploy its resources “to combat problematic VATPs and protect investor interests”.

HKPF Police Assistant Commissioner Yves Chung said the task force had an important role in sharing information and jointly responding to “the challenges arising from VATPs to better protect the general public of Hong Kong”.

The SFC has since published a list of all licensed, licensed, closed and pending exchanges with “suspicious VATPs”.

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