SFC to Beef Up List of Suspicious Crypto Exchanges After JPEX Fiasco
by Fintech News Hong Kong September 25, 2023Hong Kong’s Securities and Futures Commission (SFC) will publish the names of virtual asset trading platform’s (VATP) that have applied for a license in the wake of the JPEX fiasco.
The regulator will enhance and issue a dedicated list of suspicious VATPs which is easily accessible and with prominence on the SFC’s website.
“The JPEX incident highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence. It also shows that dissemination of information to the investing public through the Alert List, warnings and investor education can be further enhanced to help members of the investing public better understand the potential risks entailed by suspicious websites or VATPs.”
So far 11 people have been arrested in connection with the JPEX case with over 2,000 investors reporting losses amounting to HK$1.3 billion.
The SFC added that it will also consider providing more information about these VATPs to alert investors at an earlier stage in a bid to be transparent.
On top of that, the SFC will also put in place a series of measures to reinforce information dissemination and investor education.
The regulator and its subsidiary the Investor and Financial Education Council (IFEC) has been working closely to educate and warn investors about the risks of trading on unregulated platforms.
“The SFC has been closely monitoring VA activities in Hong Kong to detect possible breaches of law under its regulatory remit. It gathers information from different sources including market news, media reports, frequent dialogues with the industry, complaints and social media. The SFC also actively assesses the need to put entities on the Alert List and refer cases to the police as appropriate.”
Both entities will soon launch a public awareness campaign against fraud and will further enhance investor education through mass media, social media and education talks.
The public is also encouraged to come forward and file complaints via this form regarding any suspicious activities they may encounter.
