JPX scandal will not affect Hong Kong crypto vision: financial writer
The Hong Kong government says the recent $165 million scandal at crypto exchange JPEX will not derail its Web 3 vision for the region.
In a keynote address at Hong Kong FinTech Week on November 2, the region's Financial Services Secretary and Treasurer Christopher Hui Sagaw said the government's plan was not affected.
“We've been asked many times whether JPEX will impact our commitment to growing the Web3 market – the answer is clearly “no”.
Hui said more than 2,500 Hong Kongers had been defrauded, citing a financial scandal at Dubai-based exchange JPEX, and the Securities and Futures Commission (SFC) warned that JPEX was promoting its services in the country without a license.
Hong Kong has said it will tighten its crypto regulations after JPEX's actions. In addition, the SFC has established a task force with the police to deal with illegal crypto exchange activities and updated its policies on crypto sales and requirements.
“There's a lot going on in regulation,” Hui said — as part of the government's future Web3 regulatory plans, the SFC will see the SFC issue guidance on tokenized securities and tokenized investment products approved by the SFC.
According to Hui, crypto regulations will be expanded to cover buying and selling “beyond the trading activities currently carried out on regulated trading platforms”.
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A “highly sought after” joint stochastic consultation by the Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau will soon conclude, taking input from the January HKMA discussion paper.
Earlier this year, reports emerged that the HKMA had pressured banks to offer services to crypto companies in the region. Hui said the HKMA will consult the sector on guidelines for banks providing crypto custodian services.
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Additional reporting by Tom Mitchell
