Hong Kong is tightening cryptocurrency regulation following arrests linked to the JPEX trading platform

  • Post by: Admin
  • Sep 19 2023

Hong Kong's leader said the territory would tighten regulation of digital assets after police arrested six people on fraud charges at an unlicensed cryptocurrency exchange in the city

The SFC also said some investors had complained that they were unable to withdraw their virtual assets from JPEX accounts or that their balances were “reduced and altered”.

The SFC and police were expected to release details of the case later on Tuesday.

Hong Kong Chief Executive John Lee told reporters on Tuesday that the government would step up efforts to educate investors and remind them to only use SFC-licensed platforms.

JPEX announced on Monday that it was suspending trading on its platform. It said in a statement that it was “negotiating with… external market makers to address the liquidity shortage.”

In a statement on Sunday, JPEX lamented “unfair treatment by relevant institutions” in Hong Kong. It accused an unnamed partner at a third market maker of “maliciously” freezing funds.