Hong Kong Establishes Task Force to Combat Crypto Scams

Hong Kong Security Secretary Chris Tang revealed on September 23 that fraud cases involving virtual assets surged, prompting measures including a new Virtual Asset Intelligence Task Force.

These actions, amid the JPEX scandal, highlight efforts to protect users from crypto fraud, necessitating enhanced regulations for virtual asset service providers.

Hong Kong Targets Platform Scams with New Task Force

Hong Kong’s Security Bureau has launched a Virtual Asset Intelligence Task Force to combat the surge in virtual asset scams. Chris Tang Ping-keung, the city’s Security Secretary, emphasized the need for the stop payment mechanism to parallel traditional banking responses.

Scams are increasingly using virtual asset platforms to withdraw illegally acquired funds, prompting critical changes in operational protocols for virtual asset service providers. Collaborative efforts with these platforms aim to initiate immediate stop payment actions when scams are identified.

According to Chris Tang Ping-keung, “Police are doing their best to locate the whereabouts of the leader of the platform. We will by all means hold the culprits accountable for their crimes.”

The announcement from Chris Tang Ping-keung, advocated for diligent pursuit of fraudsters, with police engaging in over 70 arrests related to the large-scale JPEX scandal. Stronger regulations and efforts to hunt down ringleaders were also outlined by Paul Chan Mo-po, Hong Kong’s Financial Secretary.

JPEX Scandal Spurs Regulatory Action as Arrests Rise

Did you know? Amid the JPEX scandal, over 70 arrests and HK$230 million have been frozen, marking an intense government effort to tackle the largest cryptocurrency fraud in Hong Kong’s history.

Bitcoin (BTC) is currently trading at $113,062.19, with a market cap of approximately $2.25 trillion and market dominance of 57.70%, according to data from CoinMarketCap as of September 23, 2025. Over the past 24 hours, trade volume reached $55.66 billion, up by 21.73%.

Coincu analysts suggest that deeper regulation and technology shifts are likely, as Hong Kong’s new measures indicate robust future compliance strategies. They highlight that such regulatory frameworks could impact global crypto trading volumes, potentially offering stronger investor safeguards in the region.