Kenne Michael 
The Securities and Futures Commission (SFC) presented a comprehensive strategy during a press conference today to combat fraudulent cryptocurrency trading platforms.
They also announced their collaboration with law enforcement agencies to prosecute individuals suspected of violating the law.
Leung Fengyi, the Chief Executive Officer of the SFC, introduced a special blacklist of cryptocurrency trading platforms with suspicious activities.
Additionally, plans were unveiled to expand the list of virtual asset trading platforms (VATPs) currently under scrutiny during the application process.
Local news sources have clarified that the existing list, which currently comprises only four platforms (HKVAX, HKBitEx, Hong Kong BGE, and Victory), emphasizes that these platforms are considered unregulated until they obtain the necessary licenses.
This measure is intended to prevent investors from being misled by false claims.
On September 25, the SFC released a statement outlining its intention to publish a comprehensive list categorizing VATPs into licensed, deemed licensed, closing down, and application-pending categories.
This initiative aims to help the public identify potentially unregulated VATPs operating in Hong Kong.
Furthermore, the SFC will maintain a dedicated list of “suspicious VATPs,” which will be prominently displayed on their website for easy access by the public.
These actions have been taken in response to the JPEX crypto exchange scandal, which is accused of soliciting Hong Kong residents without the necessary license.
The estimated financial impact of this scandal is approximately HK$1.43 billion ($182 million).
Over 2,200 complaints from affected users have been reported to local police, resulting in the arrest of 11 individuals, including JPEX employees and individuals allegedly associated with the company.
