Law enforcement officials and financial regulators in Hong Kong have teamed up to better identify illegal activities on cryptocurrency exchanges. The initiative, which comes in the wake of the crackdown on the JPEX exchange, seeks to improve coordination between the government agencies in similar investigations in the future.
Hong Kong’s Financial Watchdog Announces Working Group on Crypto Exchanges Amid JPEX Probe
The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) of China’s special administrative region have established a dedicated working group to improve collaboration between the authorities in efforts to monitor and investigate illicit and illegal activities linked to Virtual Asset Trading Platforms (VATPs), or cryptocurrency exchanges.
The unit has been set up after a high-level meeting of the two agencies on Sept. 28, the SFC announced Wednesday. Its members represent the HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, and Financial Intelligence and Investigations Bureau as well as the SFC’s Enforcement Division and Intermediaries Division.
The group’s main tasks will be to facilitate the sharing of information on suspicious activities and breaches of VATPs, introduce a risk assessment mechanism for crypto exchanges and enhance coordination and collaboration in related investigations, the press release detailed.
“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 combatting problematic VATPs and protect the interest of investors,” SFC Executive Director of Enforcement, Christopher Wilson, was quoted as stating.
Assistant Commissioner of Police, Eve Chung, described the joint platform as instrumental for speeding up intelligence exchange in response to VATP-related challenges, adding that its implementation will help Hong Kong authorities to better protect the general public.
The working group has been formed amid an ongoing investigation of cryptocurrency exchange JPEX which resulted in the suspension of some of its activities and multiple arrests. The probe also led to increased regulatory scrutiny over the whole sector at a time when Hong Kong is seeking to revive its status of a global financial center including by taking steps to become a major hub for digital assets and crypto businesses.
Do you think the working group set up by the Hong Kong authorities will hamper the operations of cryptocurrency exchanges in the region? Tell us in the comments section below.
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