Hong Kong’s Securities and Futures Commission (SFC) has taken strong action in response to the developing JPEX cryptocurrency exchange scandal, blacklisting four platforms suspected of fraud.
At a recent press conference, the SFC outlined plans to combat fraudulent crypto trading platforms and work closely with law enforcement to prosecute illegal activities. SFC CEO Leung Fengyi introduced a blacklist of suspicious platforms and plans to increase oversight of virtual asset trading platforms (VATPs) seeking licenses.
The initial blacklist contains just four platforms: HKVAX, HKBitEx, Hong Kong BGE, and Victory. The SFC emphasized these exchanges are unregulated until licensed, aiming to prevent misleading investors. A comprehensive list of licensed, pending, and suspicious VATPs will be published on the SFC website.
These measures follow the JPEX scandal, which may become Hong Kong’s largest fraud case ever. JPEX is accused of soliciting Hong Kong residents without a license, causing estimated losses of $182 million. Over 2,200 user complaints led to 11 arrests of JPEX staff and influencers.
The SFC crackdown highlights the ongoing risks posed by unregulated crypto platforms. By blacklisting suspicious entities and collaborating with law enforcement, the SFC aims to restore trust after major scandals like JPEX through proactive enforcement and transparency.
