Key learning points
Hong Kong’s Securities and Futures Commission (SFC) has provided details of its investigation into unlicensed virtual asset trading platform JPEX.
More than 2,000 people have reported that they have been scammed by JPEX, involving more than HKD 1.4 billion.
SFC CEO Leung Fung-yee emphasizes that the incident will not change Hong Kong’s direction in developing a Web3 ecosystem.
Background and research timeline
The Hong Kong Securities and Futures Commission (SFC) has shed light on it research in JPEX, an unlicensed virtual asset trading platform, accused of fraud. The platform has received complaints from more than 2,000 individuals, involving assets worth more than HKD 1.4 billion. The SFC began monitoring JPEX in early 2022 after suspecting false claims on its website and advertisements. In July 2022, the platform was put on a watchlist due to the evasive responses. Formal investigations were launched in June 2023, leading to an official warning on September 13, 2023.
Regulatory attitude
SFC CEO Leung Fung-yee stated that the incident underlines the importance of regulation. She emphasized that Hong Kong’s commitment to developing a Web3 ecosystem remains unchanged. “If there is no regulatory system, investors cannot identify which platforms are relatively safe and reliable,” Leung added.
Ongoing police investigation
When asked about the possibility of blocking or colluding with the transfer of assets from JPEX, Christopher Wilson, executive director of the Regulatory Enforcement Department, said law enforcement is currently leading the related investigation and declined to release further details.
Concerns about the transition period
Regarding the 12-month transition period for virtual asset platforms to comply with the new regulations, Huang Lexin, head of the SFC’s fintech group, said the scheme is intended to give platforms operating in Hong Kong a reasonable period of time. to apply for licenses and meet legal requirements.
Disclaimer and Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication or distribution without express permission is prohibited. Any permitted uses require appropriate credit and direction to the original content.
Image source: Shutterstock