Hong Kong Official Calls For Crypto Regulation Amid JPEX Fiasco

• Hong Kong Particular Administrative Area’s Chief Govt has known as for a stricter regulatory regime for crypto.
• The Chief Govt of Hong Kong cited the case of the crypto change JPEX, which just lately suspended withdrawals.
• Hong Kong police beforehand arrested six folks following hundreds of complaints towards the change.

John Lee, the Chief Govt of the Hong Kong Particular Administrative Area (HKSAR), just lately known as for stricter crypto rules following the continuing points with native crypto change JPEX. Lee’s feedback got here a day after the change suspended buying and selling and withdrawals amid an investigation by the native police and regulators.

Based on a press launch by the Authorities of the Hong Kong Particular Administrative Area, Lee attended a media session forward of an Govt Council assembly earlier at the moment. In the course of the media interplay, the federal government official cited the JPEX incident to focus on the necessity for a correct regulatory regime, given its impression on town’s ambition to change into a world digital belongings hub.

“The aim of getting a licensing regime is to let buyers know that in the event that they wish to make sure that they’re effectively protected, then contemplate investing solely on platforms which might be regulated. For different platforms that aren’t regulated by the SFC, there will likely be a variety of dangers,” John Lee said.

The highest authorities official urged native buyers to solely work together with crypto platforms which might be licensed and controlled by Hong Kong’s Securities and Futures Fee (SFC). He added that the native administration would take measures to carry public training for digital asset buyers with the intention to enlighten them concerning the dangers related to crypto investments and buying and selling.

The Securities and Futures Fee beforehand accused JPEX of working within the area with out a license. The Hong Kong police obtained greater than 1400 complaints concerning the crypto change, with the concerned quantity exceeding $128 million. The police subsequently arrested six individuals in reference to the matter, together with two social media influencers.