Hong Kong SFC Announces A Special Blacklist Of Suspicious Crypto Trading Platforms

Key Points:

• Hong Kong’s SFC acts against crypto fraud after the JPEX scandal.
• A special blacklist and expanded scrutiny to protect investors.
• 11 arrests were made in the HK$1.43 billion JPEX case.

Hong Kong’s Securities and Futures Commission (SFC) has taken swift action in response to the JPEX incident, which is poised to become one of the largest fraud cases in the city’s history.

Hong Kong SFC Announces 4 Platforms Suspected Crypto Fraud

The SFC, in a press conference today, unveiled a comprehensive strategy to combat fraudulent cryptocurrency trading platforms and collaborate with law enforcement agencies to prosecute those suspected of breaking the law.

SFC’s Chief Executive Officer, Leung Fengyi, introduced a special blacklist of suspicious cryptocurrency trading platforms and revealed plans to expand the list of virtual asset trading platforms (VATPs) currently under application scrutiny.

The existing list, comprising only four platforms, including HKVAX, HKBitEx, Hong Kong BGE, and Victory, emphasizes that these platforms are unregulated until they obtain licenses, according to local news. The goal is to ensure that investors are not misled by false statements.

In a statement released on September 25, the SFC announced its intention to publish a comprehensive list of licensed, deemed licensed, closing down, and application-pending VATPs. This move aims to assist the public in identifying potentially unregulated VATPs operating in Hong Kong.

Moreover, the SFC will maintain a dedicated list of “suspicious VATPs,” prominently displayed on its website for easy access by the public.

JPEX Scandal: 11 Arrested as Investors Seek $182 Million Recourse

These measures come in the wake of the JPEX crypto exchange scandal, accused of soliciting Hong Kong residents without the required license, with an estimated financial impact of approximately HK$1.43 billion ($182 million). Over 2,200 complaints from affected users have been reported to local police, leading to the arrest of 11 individuals, including JPEX employees and influencers allegedly associated with the company.

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