The recent alleged scandal involving crypto exchange JPEX, which saw $165 million at stake, will not hinder Hong Kong’s Web3 vision for the region, according to the government. During a keynote speech at Hong Kong Fintech Week on November 2, Christopher Hui, the region’s Secretary for Financial Services and the Treasury, stated that the saga has not affected the government’s plan. Hui made it clear that despite the controversy, the determination to grow the Web3 market remains unwavering.
The scandal in question revolves around JPEX, a Dubai-based exchange, where 2,500 locals claim to have been defrauded. As a result, the Securities and Futures Commission (SFC) issued a warning, stating that JPEX had been promoting its services locally without a proper license. In response to these alleged actions, Hong Kong has decided to tighten its crypto regulations. The SFC has partnered with the police to establish a task force that will specifically address illicit crypto exchange activities. Furthermore, they have updated their policies regarding crypto sales and requirements.
Hui acknowledged that there are several ongoing activities on the regulatory front. As part of the government’s future Web3 regulatory framework plan, the SFC will be issuing guidance on tokenized securities and the tokenization of SFC-authorized investment products. In addition, crypto regulations will be expanded to cover buying and selling beyond trades conducted on regulated trading platforms.
The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau are set to release a long-awaited joint consultation on stablecoins. This consultation will gather feedback from a previously conducted HKMA discussion paper, aiming to provide valuable insights into stablecoin regulation.
Earlier this year, reports indicated that the HKMA exerted pressure on banks to offer services to crypto companies in the region. Hui assured that the HKMA will consult the sector on providing guidance for banks that offer digital asset custodial services. This move indicates a willingness to support the growth of digital asset services while ensuring proper oversight and compliance.
Overall, despite the JPEX scandal, Hong Kong remains committed to its Web3 vision for the region. The government is actively taking steps to tighten crypto regulations and establish a regulatory framework that promotes growth while ensuring investor protection.
Sources:
– Hong Kong Government: https://cointelegraph.com/news/jpex-scandal-wont-impact-hong-kong-crypto-vision-financial-secretary
– Securities and Futures Commission: https://cointelegraph.com/news/jpex-scandal-wont-impact-hong-kong-crypto-vision-financial-secretary
– Hong Kong Monetary Authority: https://cointelegraph.com/news/jpex-scandal-wont-impact-hong-kong-crypto-vision-financial-secretary
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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