Kenne Michael 
Hong Kong Police Force (HKPF) and Securities and Futures Commission (SFC) have formed a crypto-focused working group to combat illegal crypto exchange activities.
The SFC said in a statement on October 4 that the group was created following a meeting with the HKPF on September 28 amid ongoing arrests and developments related to the Dubai-based JPEX exchange.
Eleven individuals were detained days before the meeting for questioning regarding their potential involvement in the JPEX scandal, in which the SFC alleges that the company promoted its services in the region without a license.
The working group’s objective is to improve monitoring and investigation of unlawful activities carried out by Virtual Asset Trading Platforms (VATPs). It will share information on suspicious activities, assess the risks of suspicious exchanges, and collaborate on investigations.
In the aftermath of the JPEX scandal, Hong Kong’s regulators have signaled their intent to tighten crypto market regulations.
The committee includes representatives from the SFC’s enforcement division and the HKPF’s commercial, cybersecurity, financial intelligence, and investigations bureaus.
Christopher Wilson, director of enforcement for the Securities and Futures Commission, stated that the agency was eager to deploy its resources to combat “problematic VATPs and protect the interests of investors.”
Eve Chung, HKPF’s Assistant Commissioner of Police (Crime), stated that the working group is instrumental in exchanging intelligence and jointly responding to “challenges arising from VATPs, to better protect the general public in Hong Kong.”
The SFC has since issued a list of all licensed, presumed licensed, closing down, and application-pending exchanges and a list of “suspicious VATPs.”
