The transfer follows the imbroglio on the JPEX crypto alternate final month, which led to a couple of arrests and the platform shuttering products and services. The unlicensed alternate is claimed to have defrauded buyers out of $204 million.

The duty power is constituted of town’s Securities and Futures Fee (SFC) and cops, together with representatives from the industrial crime, cybersecurity and era crime, and fiscal intelligence and investigations police bureaus.

In keeping with the announcement, it is going to “reinforce collaboration in tracking and investigating unlawful actions associated with virtual-asset buying and selling platforms,”

Protective Hong Kong Public

Additionally, the JPEX saga threatens to complicate Hong Kong’s push to transform a regional crypto and fintech hub.

Hong Kong rolled out a brand new regulatory framework for crypto belongings previous this 12 months and granted the primary obligatory licenses for virtual asset buying and selling platforms in August.

Vince Turcotte, a expert at Cognitive GRC, a crypto license advisory company, mentioned:

“This strengthens the popularity of Hong Kong as a secure and compliant jurisdiction to do industry in digital belongings. The formation of the duty power is a proactive step to shore up self belief within the new regime.”

Hong Kong officers are striving to be informed extra concerning the 2022 crypto contagion and a couple of collapses of high-profile platforms.

Assistant police commissioner Eve Chung mentioned the running workforce is “instrumental to fast-tracking of essential intelligence alternate and joint collaboration in responses to the demanding situations coming up from Digital Asset Buying and selling Platforms (VATPs), in an effort to higher offer protection to most people of Hong Kong.”

In mid-September, the SFC contacted related influencers, opinion leaders, and OTC retailers, inquiring for they prevent selling JPEX and its products and services. An extra crackdown on influencers connected with the defunct crypto alternate adopted.

JPEX Dividends Plan

Moreover, JPEX has persevered with a debatable plan to transform customers’ belongings into shareholder dividends that may most effective be claimed in two years.

The company claims the transfer will elevate money drift and retain buyers. Customers gets dividends in more than a few paperwork in two years in line with their stake, consistent with experiences.

This week, JPEX mentioned a referendum it held with customers has concluded with 68% vote casting in want of the dividends plan.

In the meantime, police have now arrested a nineteenth suspect connected to the case and impounded his Porsche.