July 21, 2024
Cryptocurrency Exchanges in Hong Kong Face Intensified Regulatory Scrutiny Amid Joint Task Force Formation
Latest Cryptocurrency News

Cryptocurrency Exchanges in Hong Kong Face Intensified Regulatory Scrutiny Amid Joint Task Force Formation

The Securities and Futures Commission (SFC) of Hong Kong’s special administrative region, in collaboration with the Hong Kong Police Force (HKPF), has established a dedicated working group aimed at enhancing cooperation between the two authorities in monitoring and investigating illicit activities related to Virtual Asset Trading Platforms (VATPs), also known as cryptocurrency exchanges.

This development follows a high-level meeting held on September 28th between the SFC and HKPF. The working group comprises members from various divisions of both organisations, including the HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, Financial Intelligence and Investigations Bureau, and the SFC’s Enforcement Division and Intermediaries Division.

The primary objectives of the working group are as follows:

  1. Facilitate the sharing of information regarding suspicious activities and breaches of VATPs.
  2. Implement a risk assessment mechanism for crypto exchanges.
  3. Enhance coordination and collaboration in investigations related to cryptocurrency exchanges.

Christopher Wilson, SFC Executive Director of Enforcement, expressed the importance of the collaboration, stating, “We have always valued our working relationship with the Police, and we look forward to our even closer collaboration in deploying our respective expertise and resources in combating problematic VATPs and protecting the interest of investors.”

Eve Chung, Assistant Commissioner of Police, emphasised the significance of this joint platform in expediting the exchange of intelligence to address challenges associated with VATPs. Chung believes that its implementation will contribute to better safeguarding the public in Hong Kong.

This working group’s formation coincides with an ongoing investigation into the cryptocurrency exchange JPEX, resulting in the suspension of some of its activities and several arrests. The investigation has also heightened regulatory scrutiny of the entire cryptocurrency sector in Hong Kong. Hong Kong aims to reestablish itself as a global financial centre and a hub for digital assets and crypto businesses.

The impact of this working group on cryptocurrency exchanges in the region remains to be seen, and it will likely depend on the outcomes of their investigations and regulatory efforts.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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