Hong Kong Official Calls For Crypto Regulation Amid JPEX Fiasco

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Hong Kong Official Calls For Crypto Regulation Amid JPEX Fiasco
  • Hong Kong Special Administrative Region’s Chief Executive has called for a stricter regulatory regime for crypto.
  • The Chief Executive of Hong Kong cited the case of the crypto exchange JPEX, which recently suspended withdrawals.
  • Hong Kong police previously arrested six people following thousands of complaints against the exchange.

John Lee, the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), recently called for stricter crypto regulations following the ongoing issues with local crypto exchange JPEX. Lee’s comments came a day after the exchange suspended trading and withdrawals amid an investigation by the local police and regulators.

According to a press release by the Government of the Hong Kong Special Administrative Region, Lee attended a media session ahead of an Executive Council meeting earlier today. During the media interaction, the government official cited the JPEX incident to highlight the need for a proper regulatory regime, given its impact on the city’s ambition to become a global digital assets hub.

“The purpose of having a licensing regime is to let investors know that if they want to ensure that they are well protected, then consider investing only on platforms that are regulated. For other platforms that are not regulated by the SFC, there will be a lot of risks,” John Lee stated.

The top government official urged local investors to only interact with crypto platforms that are licensed and regulated by Hong Kong’s Securities and Futures Commission (SFC). He added that the local administration would take measures to bring public education for digital asset investors in order to enlighten them about the risks associated with crypto investments and trading.

The Securities and Futures Commission previously accused JPEX of operating in the region without a license. The Hong Kong police received more than 1400 complaints about the crypto exchange, with the involved amount exceeding $128 million. The police subsequently arrested six persons in connection with the matter, including two social media influencers.