Hong Kong Responds to JPEX Scandal with Crypto Task Force

In response to the unfolding JPEX exchange saga, the SFC has established a joint crypto task force with the police.

Police officer in Hong Kong.
Created by Kornelija Poderskytė from DailyCoin
  • Hong Kong authorities have formed a crypto task force.
  • The development comes in light of fraud allegations on the JPEX exchange.
  • The task force draws professionals across SFC and HKPF.

Hong Kong authorities are tightening their grip on crypto oversight in a bid to curb illegal activities related to Virtual Asset Trading Platforms (VATPs) in the wake of the JPEX exchange fraud saga.

On October 4, the region’s Securities and Futures Commission (SFC) announced a dedicated task force in collaboration with the Hong Kong Police Force (HKPF) to enhance collaboration in monitoring and investigating crypto-related crimes.

Bringing Together High-Level Divisions of Law Enforcement

Per the announcement, the task force was established following a high-ranking meeting between the two government agencies on September 28, which came on the heels of multiple arrests and cash asset seizures connected to the unfolding JPEX exchange scandal.

Although the press release didn’t quote an exact number of people on the task force, the SFC affirmed that it comprised of individuals drawn from the HKPF’s Financial Intelligence and Investigations Bureau, Cyber Security and Technology Crime Bureau, Commercial Crime Bureau, and the SFC’s Enforcement and Intermediaries Divisions.

“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’s Executive Director of Enforcement, Mr. Christopher Wilson, said.

The Assistant Commissioner of Police (Crime), Ms. Eve Chung, lauded the collaboration, noting that it would foster fast-tracking of vital intelligence in response to the challenges arising from VATPs and help the government “better protect the general public of Hong Kong.”

JPEX Led to a Public Outcry

Following public outcry, and just a day before the joint task force was established, Hong Kong’s Secretary for Security spoke in a press conference and vowed to hunt down the “ringleader” of JPEX after 2,392 victims came forward to file complaints about the exchange.

With the rejuvenated task force in place, that might just happen sooner than expected.

Stay updated on how the JPEX exchange saga is unfolding:
Hong Kong, Macau Police Closes on JPEX with New Arrests

Read why Hong Kong is on a go-slow on crypto after the JPEX scandal:
Hong Kong Slams Brakes on Crypto Following JPEX Scandal

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.