Hong Kong Forms Task Force to Supervise Cryptocurrency Exchanges in Collaboration with Police and SFC
Date: 2023-10-05 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Working Group for Supervising Cryptocurrency Exchanges in Hong Kong
The Hong Kong Police and the Securities and Futures Commission of Hong Kong (SFC) have joined forces to establish a working group aimed at combating illegal activities on cryptocurrency exchanges. This new collaboration seeks to strengthen oversight of the cryptocurrency market in Hong Kong and prevent illicit cryptocurrency exchanges.
The working group comprises representatives from various agencies, such as the Commercial Crime Bureau, the Cyber Security and Technology Crime Bureau, the Financial Intelligence Unit, and investigators from the SFC's enforcement division. This allows for the formation of a team of experts with diverse skills and experience for effective supervision of cryptocurrency exchanges.
Key Objectives of the Working Group
The primary objective of the new working group is to expand the monitoring of suspicious cryptocurrency transactions and conduct more in-depth investigations into illegal activities associated with Virtual Asset Trading Platforms (VATPs). This is a critical area of focus, as cryptocurrencies are becoming increasingly popular and can be used for illicit activities such as money laundering and terrorist financing.
To achieve this goal, law enforcement and regulators will utilize specialized mechanisms to assess the risks associated with suspicious cryptocurrency transactions. This includes the analysis of data and transactions on cryptocurrency exchanges, as well as the exchange of information among various members of the working group.
Collaboration for Enhanced Security
Eva Chung, Assistant Commissioner of Police in Hong Kong, emphasized the importance of this initiative, stating that the new platform for sharing intelligence between the police and the SFC will expedite responses to potential issues related to cryptocurrency platforms and simplify the protection of Hong Kong residents. This collaboration creates a more efficient mechanism for ensuring security within the cryptocurrency sphere.
Example of Arrests Related to Cryptocurrency Operations
The establishment of the working group followed the arrest of several individuals involved in the operations of the JPEX cryptocurrency exchange. The SFC had previously warned about the dissemination of false statements by JPEX's creators on social media, claiming that the exchange was licensed by regulators to trade virtual assets in Hong Kong. This underscores the need for stricter oversight and regulation in the cryptocurrency operations sphere.
