The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have formed a crypto-focused working group to address illicit activities related to crypto exchanges. Established after a meeting on September 28 amid ongoing arrests linked to the JPEX exchange scandal, the group aims to enhance monitoring and investigation of illegal activities carried out by virtual asset trading platforms (VATPs). It will focus on sharing information on suspicious activities, assessing the risks of dubious exchanges, and collaborating on investigations. The move comes as Hong Kong regulators express their intentions to tighten crypto market regulations in response to the JPEX situation. 
Hong Kong Police Force and Securities and Futures Commission Establish Crypto Working Group
The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have jointly established a working group focused on addressing illicit activities related to cryptocurrency exchanges. Formed after a meeting on September 28, the working group aims to enhance monitoring and investigation of illegal activities carried out by virtual asset trading platforms (VATPs). It will focus on sharing information on suspicious activities, assessing risks associated with dubious exchanges, and collaborating on investigations.
The move comes amid ongoing arrests linked to the JPEX exchange scandal. Days before the working group was formed, 11 people were detained for questioning over their potential involvement in the JPEX scandal. The SFC has alleged that the Dubai-based JPEX exchange has been promoting its services in the region without a license.
The working group comprises officials from the SFC's enforcement division and HKPF officials from its commercial, cybersecurity, financial intelligence, and investigations bureaus. Hong Kong regulators have previously indicated their intention to tighten cryptocurrency market regulations following the JPEX situation.
Eve Chung, HKPF’s Assistant Commissioner of Police (Crime), highlighted the working group's importance in exchanging intelligence and responding jointly to challenges arising from VATPs to better protect the general public of Hong Kong.
The SFC has also published lists of licensed, deemed licensed, closing down, and application-pending exchanges, along with a list of “suspicious VATPs,” as part of its efforts to address crypto-related issues.
(JESSE COGHLAN, COINTELEGRAPH, 2023)