JPEX Scandal Pushes Hong Kong's SFC to Roll Out New Crypto Rules

<p>In a move
to bolster retail investors' protection, Hong Kong's Securities and Futures
Commission (SFC) has announced a series of new measures this week. These
initiatives come on the heels of the JPEX crypto exchange debacle, which
exposed vulnerabilities in the city's regulatory framework for virtual assets.
The SFC's new measures aim to enhance transparency, improve public awareness,
and tighten regulations around crypto trading platforms.</p><p>JPEX Blowup Prompted
Response from Hong Kong Regulator</p><p>In June
2023, Hong Kong opened up to retail cryptocurrency trading, significantly
relaxing the country's existing rules. However, the number of licensed
platforms that could provide these services remains small, a fact exploited by
other, <a href="https://www.financemagnates.com/forex/news-nuggets-13-september-sec-charges-virtu-yieldstreet-hk-warns-against-crypto-firm/" target="_blank" rel="follow">unregulated entities</a> to attract new customers. One such <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> was
JPEX, which is now facing serious issues with the withdrawal of investor funds.</p><p>To combat
the disinformation, the SFC plans to publish a comprehensive list of licensed Virtual
Asset Trading Platforms (VATPs) on its website. This list will include currently
licensed platforms, those in the application process, and entities that have
been ordered to shut down or are deemed suspicious. The regulator believes this
transparent approach will help investors decide which platforms to engage with.</p><blockquote><p lang="en" dir="ltr">