The Securities and Futures Commission (SFC) of Hong Kong and the Hong Kong Police Force announced Wednesday the establishment of a working group to monitoring and investigating illegal activities related to Virtual Asset Trading Platforms (VATPs). 

See related article: Hong Kong crypto network Mixin loses US$200 million in hack

Fast Facts

  • The division was established to share information on suspicious activities around VATPs, implement a risk assessment mechanism for suspicious platforms and enhance coordination and collaboration in related investigations, the SFC said in a press release on Wednesday. 
  • The working group was established after the two parties met on Sept. 28 and includes representatives from HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, Financial Intelligence and Investigations Bureau and representatives from SFC’s Enforcement and Intermediaries divisions.
  • Former SFC regulator, Angelina Kwan, told Forkast in an earlier interview that Hong Kong may tighten regulatory enforcement following the scandal with unlicensed virtual asset platform JPEX, which allegedly caused around HK$1.2 billion (US$154 million) in losses to over 1,600 investors, the largest fraud case in Hong Kong’s history. 

See related article: JPEX crypto exchange shuts trading amid Hong Kong regulator probe