The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have established a cryptocurrency-focused working group to tackle illicit cryptocurrency exchange activities.
On October 4th statementThe SFC said the group was formed following a meeting with the HKPF on September 28 amid the arrests and ongoing developments regarding the Dubai-based JPEX exchange.
Days before the meeting, 11 people were detained for questioning about their possible role in the JPEX scandal, in which the Financial Supervision Commission alleged that the company was promoting its services in the region without a licence.
The goal of the working group is to strengthen the monitoring and investigation of illegal activities conducted by virtual asset trading platforms (VATPs), and it will share information about suspicious activities, assess the risks of suspicious exchanges, and cooperate in investigations.
Regulators in Hong Kong have previously indicated that they are looking to tighten regulations on the cryptocurrency market in the wake of the JPEX saga.
The group includes officials from the Enforcement Division of the Financial Supervision Commission and HKPF officials from the Intelligence, Business Investigations, Cybersecurity and Finance offices.
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In a statement, SFC enforcement director Christopher Wilson said the regulator was looking to deploy its resources to combat the “problematic VAT tax and protect investors’ interests”.
HKPF Assistant Commissioner of Police (Crime) Eve Chung said the working group was instrumental in sharing intelligence and jointly responding “to the challenges arising from the VAT, in order to better protect the public in Hong Kong”.
The SFC has since published a existing All licensed and considered licensed exchanges that are closed and suspended for application as well as the “suspicious VAT tax” list.
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