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The Need for Crypto Regulations in Hong Kong: JPEX Incident Triggers Calls for Stricter Measures

source-logo  en.coin-turk.com 20 September 2023 02:13, UTC

In recent days, the troubles at JPEX Exchange have prompted authorities in Hong Kong to take action. The withdrawal issues and unanswered inquiries seem to be triggering a new wave of regulatory measures.

Time for Regulation in Cryptocurrencies

John Lee, the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), recently called for stricter crypto regulations in the wake of the ongoing troubles at the renowned Hong Kong crypto exchange, JPEX.

Lee’s comments came just a day after the exchange suspended trading and withdrawals amid an investigation by local police and regulators.

In a statement issued by the Hong Kong government, Lee emphasized the need for appropriate regulatory rules, considering the city’s aspiration to be a global crypto asset hub, with reference to the JPEX incident, during a media briefing held before an Executive Council meeting earlier today.

John Lee stated:

“The purpose of having a licensing regime is to ensure that investors know that they are only thinking about investing in regulated platforms if they want to be sure that they are well protected. There will be many risks for other platforms that are not regulated by the SFC.”

Call for Trust from the Authorities

As a senior government official, Lee called on local investors to conduct transactions only through crypto platforms licensed and regulated by the Securities and Futures Commission (SFC) of Hong Kong. He also added that the local administration will take measures for public education to enlighten digital asset investors about the risks associated with crypto investments and trading.

The Securities and Futures Commission had previously put JPEX in the spotlight for operating without a license in the region. Hong Kong police received over 1,400 complaints about the crypto exchange, and the amount involved in these complaints appears to exceed $128 million. Subsequently, the police arrested six individuals, including two social media influencers, in connection with the case.