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

The Hong Kong Police Pressure (HKPF) and the Securities and Futures Fee (SFC) have arrange a crypto-focused working group to cope with illicit crypto trade actions.

In an Oct. 4 statement, the SFC stated the group was shaped after a gathering with the HKPF on Sept. 28 amid persevering with arrests and developments in connection to the Dubai-based JPEX trade.

Days earlier than the assembly, 11 people were detained for questioning over their attainable position within the JPEX scandal, wherein the SFC has alleged the firm has been promoting its companies within the area and not using a license.

The working group’s purpose is to boost monitoring and investigation of unlawful actions carried out by Digital Asset Buying and selling Platforms (VATPs) and can share info on suspicious actions, assess dangers of suspicious exchanges, and collaborate on investigations.

Hong Kong’s regulators beforehand flagged they have been trying to tighten crypto market regulations within the wake of the JPEX saga.

The group contains officers from the SFC’s enforcement division and HKPF officers from its business, cybersecurity and monetary intelligence and investigations bureaus.

Associated: Hong Kong Stock Exchange launches settlement platform powered by smart contracts

In an announcement, SFC enforcement director Christopher Wilson stated the regulator seemed ahead to deploying its sources to fight “problematic VATPs and shield the curiosity of buyers.”

Eve Chung, HKPF’s Assistant Commissioner of Police (Crime), stated the working group is instrumental in exchanging intelligence and collectively responding to “challenges arising from VATPs, to higher shield most of the people of Hong Kong.”

The SFC has since printed a list of all licensed, deemed licensed, closing down, and application-pending trade’s along with a list of “suspicious VATPs.”

Journal: Are DAOs overhyped and unworkable? Lessons from the front lines