Hong Kong’s Securities and Futures Commission (SFC) has introduced new measures to improve investor education following the JPEX debacle.
In a statement on September 25, the financial regulator announced its intention to publish a comprehensive list of licensed virtual asset trading platforms (VATPs) on its website. This list includes licensed platforms, those in the application process, the entities the company has ordered closed, and the platforms it deems suspicious.
According to the regulator, this comprehensive list would be communicated transparently and in a timely manner to alert investors to the companies they need to communicate with.
In addition, the commission plans to launch a fraud prevention publicity campaign to educate the public on fraud protection. In addition, it plans to investigate and prosecute illegal platforms, promising to strengthen its intelligence-gathering process on companies dealing with virtual assets.
Lawmaker pushes for Web3 regulatory commission.
Meanwhile, Hong Kong MP Johnny Ng revealed he has written to the Legislative Council to create a subcommittee to focus on the emerging industry.
According to him, this committee will complement the recent regulatory reforms by discussing the development of Web3 and virtual assets and investigating the loopholes in the current regulations that enabled the implosion of JPEX.
Ng is a pro-crypto lawmaker who has consistently advocated for the industry in the Asian city. The lawmaker recently invited Ethereum (ETH) co-founder Vitalik Buterin to the region so he could gain insight into Hong Kong’s cryptocurrency approach.
Case update from JPEX
During the weekend the Sfrom the Chinese Morning Post reported that police have arrested 11 individuals in connection with the JPEX case. According to the report, authorities are actively seeking help from Interpol in their pursuit of the exchange’s leaders, and have also successfully frozen a number of cryptocurrencies linked to the fraud.
In its statement, the SFC said it would regularly review the regulatory regime in Hong Kong and consider timely measures in light of new market developments. It added:
“The SFC will work with the police to establish a dedicated channel to share information on suspicious activities and violations by VATPs and investigate the JPEX incident to bring the offenders to justice.”
The implosion of the Hong Kong-based crypto exchange had raised questions about the city’s regulatory procedures. According to reports, the carpet pull affected approximately 2,305 victims with a loss of approximately $178 million.
The post Hong Kong Increases Transparency of Crypto Companies After JPEX Explosion first appeared on CryptoSlate.