In his speech at Hong Kong FinTech Week, Finance Minister Christopher Hui mentioned the financial scandal surrounding the Dubai-based exchange JPEX. Local police have received more than 2,500 complaints from Hong Kong residents who claim they were defrauded by the exchange. It all started when Hong Kong’s Securities and Futures Commission (SFC) warned the public that JPEX was operating in the local market without a license.
“Many fear that the recent $165 million JPEX scandal will hinder cryptocurrency companies in the region. We are often asked whether this will impact our commitment to developing the Web3 market. The answer is clear: no,” said the Minister of Finance.
The official said the government will tighten oversight of cryptocurrencies following the alleged scam on the JPEX exchange. Recently, the police and the SFC formed a task force to combat illegal cryptocurrency exchange activities.
Hui said authorities will update requirements for crypto companies and policies regarding cryptocurrency trading. The authorities are now actively discussing with the SFC the rules for tokenization of securities and investment products, and are also working on the regulatory framework for Web3. The Hong Kong Monetary Authority (HKMA) will also consult with banks that provide custody services for cryptocurrencies.
Previously, Hong Kong authorities promised that they plan to publish guidelines for regulating stablecoins in 2024.
Source: Bits
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