Hong Kong Forms Crypto Task Force Amid JPEX’s $300M Freeze

Paigambar Mohan Raj
Source: Crypto News

The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have formed a new crypto task force. The formation of the task force comes right after the $200 million heist from the Mixin Network and the ongoing JPEX scandal. The task force aims to deal with illicit crypto exchange activities within the region. Additionally, it seeks to enhance the monitoring of  Virtual Asset Trading Platforms (VATPs).

According to an official statement, the SFC formed the group after meeting with the HKPF on Sept. 28, 2023. Assistant Commissioner of Police (Crime), Eve Chung stated, “The implementation of the new platform between the Police and the SFC is instrumental to fast-tracking of vital intelligence exchange and joint collaboration in responses to the challenges arising from VATPs, so as to better protect the general public of Hong Kong.”

Also Read: Hong Kong’s SEBA Bank Wins Approval To Offer Crypto Services

The task force comprises the SFC’s enforcement division and HKPF officials from its commercial, cybersecurity, and financial intelligence and investigations bureaus.

Hong Kong’s JPEX crypto exchange Registered to Australian apartment?

Source: PayBito

The JPEX collapse has shaken investors, especially after authorities froze up to $300 million worth of assets. The SFC claims that the platform was promoting its services without a license. Recently, 11 people were detained in connection to the exchange. Influencer Joseph Lam Chok was one among the arrested people.

Also Read: Hong Kong Financial Watchdog Issues Warning to Crypto Firms

However, according to a new Australian Financial Review report, JPEX is registered to an apartment building in North Sydney. Sydney-based actor Jeremiah Hartmann has also come on the authorities’ radar. However, Hartmann has insisted that he was never an employee. Nonetheless, he has appeared in several JPEX promotional videos.

The JPEX issue is the first major case under the new crypto licensing regime in Hong Kong. How the authorities deal with the matter could set the tone for how future investigations take place in the region.