Hong Kong’s Securities and Futures Commission (SFC) is bringing transparency following the arrests involving JPEX with the publication of the list of all virtual asset trading platforms (VATPs) applicants. It will also “enhance and issue a dedicated list of suspicious VATPs.”
SFC Is Making Crypto Industry Transparent
In the announcement today (Monday), the Hong Kong regulator highlighted that the names of the VATP applicants will be published “in light of public demand.” It will also publish lists of licensed VATPs, closing-down VATPs, and deemed-to-be-licensed VATPs.
Hong Kong’s SFC has mandated licensing all crypto platforms operating within its jurisdiction, a move welcomed by the wider industry. Until now, only OSL Digital Securities Limited and Hash Blockchain Limited have received the license, while a few have submitted their application.
According to the South China Morning Post, HKVAX, HKBitEx, Hong Kong BGE Limited, and Victory Fintech Company Limited are four crypto exchanges that applied for crypto licenses from the SFC.
The JPEX Scandal
The vigilance of the SFC was triggered by its action against the alleged fraud of JPEX, a crypto exchange extensively targeting Hong Kong residents. The regulator alleged that JPEX falsely claimed that it was awaiting a license in Hong Kong and labeled the platform as fraud.
The Hong Kong police also got involved in the bust against JPEX and arrested and detained several people with ties to the exchange, including influencers Joseph Lam Chok and Chan Wing-yee.
The authorities in Hong Kong reportedly received complaints from 1,641 investors on JPEX, involving HK$1.2 billion ($128 million) in crypto assets, making it the largest financial fraud in the Chinese autonomous administrative region.
“The JPEX incident highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence,” the regulatory announcement stated. “It also shows that dissemination of information to the investing public through the Alert List, warnings, and investor education can be further enhanced to help members of the investing public better understand the potential risks entailed by suspicious websites or VATPs.”
This article was written by Arnab Shome at www.financemagnates.com.