Hong Kong Authorities Launch Joint Task Force to Combat Cryptocurrency Malfeasance Post JPEX Incident

Hong Kong’s Securities and Futures Commission (SFC) is partnering with local police to establish a dedicated team to address illicit actions in cryptocurrency trading venues.

Following the JPEX incident, Hong Kong’s oversight agencies are intensifying their efforts against malpractice in the crypto domain. In this endeavor, the SFC is uniting with the Hong Kong Police Force (HKPF) to keep a close watch on and probe malfeasances concerning Virtual Asset Trading Platforms (VATPs).

The newly-formed team pools expertise from multiple units of both the SFC and the Hong Kong police, including the Commercial Crime Bureau, the Cyber Security and Technology Crime Bureau, and the Financial Intelligence and Investigations Bureau. This collaborative initiative got the go-ahead on September 28, post a high-level discussion between the SFC and HKPF delegates.

Objective-wise, the SFC clarified that this dedicated team will target:

• Effective information exchange on dubious actions and breaches concerning VATPs.
• Crafting a system to assess VATPs’ risk levels.
• Enhancing joint efforts in existing and impending inquiries on cryptocurrency trading platforms.
  Hong Kong regulators were jolted by the recent JPEX cryptocurrency exchange deceit.

Accusations suggest that the exchange secretly siphoned off 190 million TRC20-USDT tokens over the past 20 months. In relation to this, Hong Kong’s police have detained 11 individuals.

source