Hong Kong Establishes a Crypto Task Force

A team focused on dealing with unlawful transactions in the crypto market has been formed by the Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC).

According to an SFC announcement on October 4, the group was established following a meeting between the two agencies on September 28 in light of recent arrests and developments related to the Dubai-based JPEX exchange.

Prior to the meeting, 11 individuals were detained for questioning for their possible involvement in the JPEX scandal.

The SFC has accused the exchange of promoting its services in Hong Kong without proper authorization.

The working group’s main objective is to strengthen monitoring and investigation of illegal activities carried out by Virtual Asset Trading Platforms (VATPs).

This will involve exchanging information on suspicious activities, assessing the risks of suspicious exchanges, and cooperating on investigative efforts.

In response to the JPEX incident, Hong Kong regulatory authorities had announced plans to tighten regulations in the crypto market.

The working group is made up of officials from the SFC’s enforcement division, as well as members of the HKPF’s commercial, cybersecurity, and financial intelligence and investigations bureaus.