The regulatory body that regulates Hong Kong’s securities and futures markets is working with the city’s police to form a working group aimed at combating illegal activities on virtual asset trading platforms (VATPs).
In a statement, the Securities and Futures Commission (SFC) said it has established a special working group with the Hong Kong Police Force (HKPF) following a high-level meeting between the two sides in late September.
The SFC said the group includes representatives from the Enforcement and Intermediaries Department and the Commercial Crime Bureau, the Cyber Security and Technology Crime Bureau and the HKPF Financial Intelligence and Investigation Bureau.
The working group will facilitate information sharing on suspicious activities and violations of crypto exchanges, implement a mechanism for evaluating the risks of suspicious digital asset platforms, and improve coordination and cooperation between the regulator and police in related investigations.
Says SFC’s Executive Director of Enforcement, Christopher Wilson,
“We have always valued our working relationship with the police and we look forward to our even closer collaboration as we deploy our respective expertise and resources to combat problematic VATs and protect the interests of investors.”
The development comes amid a slew of breaches committed by crypto exchanges. Last month, the CEO of Istanbul-based crypto exchange Thodex was sentenced to more than 11,000 years in prison for stealing $2 billion in crypto assets from the platform’s customers.
Former crypto golden boy Sam Bankman-Fried is also currently facing charges for using customer funds from the FTX exchange.
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