JPEX

The infamous <a href="https://news.todayq.com/crypto-exchange-jpex-ceases-trade-amid-liquidity-crisis-hong-kong-regulatory-probe/" rel="noopener noreferrer nofollow">JPEX crypto exchange scandal</a> has raised question marks around Hong Kong—and its status as an emerging global crypto hub. With Hong Kong residents <a href="https://news.todayq.com/report-hong-kong-residents-grow-weary-of-digital-assets-following-jpex-crypto-scandal/" rel="noopener noreferrer nofollow">falling out of love with digital assets</a>, the city’s regulators are shifting to a more hard-nosed regulatory framework for virtual currencies. What does Hong Kong’s updated crypto policy say? 
In ajoint circular released Friday, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announced they’re updating their existing policy on virtual currency sales and requirements. The revised guidelines prohibit retail investors from purchasing certain virtual asset-related products. 
Hong Kong’s market regulator, the SFC, said the decision has been taken in “light of the latest market developments and inquiries of the industry.” Furthermore, intermediaries who wish to distribute virtual asset-related products have been advised to “assess whether clients have knowledge of investing in virtual assets” before making any transactions.&nbsp; Source: Securities and Futures Commission 
“Although virtual assets are becoming more popular in some parts of the world, the global regulatory landscape remains uneven. The risks associated with investing in virtual assets identified by the SFC back in 2018 continue to apply,” the SFC said. SFC classifies digital assets as “complex products” 
The updated policy deems virtual assets as “complex products”. The regulators plan to regulate them in the same way as similar financial products. Crypto exchange-traded funds and products issued outside Hong Kong meet the requirements of complex products, according to the joint circular issued by the SFC and HKMA.&nbsp;
The development comes at a time when crypto investors in Hong Kong are on edge in the wake of the <a href="https://news.todayq.com/hong-kong-police-arrests-eight-people-in-connection-with-jpex-crypto-fraud/" rel="noopener noreferrer nofollow">alleged financial fraud linked to JPEX</a>. Thousands of people have been impacted by the <a href="https://news.todayq.com/hong-kong-police-takes-28-people-into-custody-in-connection-with-jpex-crypto-scandal/" rel="noopener noreferrer nofollow">JPEX crypto scandal</a>, with victims’ losses amounting to nearly $200 million.
It’s unclear what specifically led the SFC to update the policy on virtual assets sales—though the move may have been informed by the JPEX crypto fraud. In October, <a href="https://news.todayq.com/hong-kong-police-takes-28-people-into-custody-in-connection-with-jpex-crypto-scandal/" rel="noopener noreferrer nofollow">Hong Kong police</a> announced they had arrested more than two dozen people in connection with the JPEX case. However, the ringleaders of the operation are still on the run. Hong Kong falling out of love with crypto 
Earlier this week, Todayq News reported that a survey —conducted by the Hong Kong University of Science and Technology (HKUST) — revealed that 41% of<a href="https://news.todayq.com/report-hong-kong-residents-grow-weary-of-digital-assets-following-jpex-crypto-scandal/" rel="noopener noreferrer nofollow"> the city’s residents do not want to invest in digital assets</a>.&nbsp;The public attitude towards crypto is also souring amid a rise in <a href="https://news.todayq.com/hong-kong-binance-users-lose-450k-amidst-surge-in-phishing-attacks/" rel="noopener noreferrer nofollow">phishing</a> attacks.&nbsp; 
© Todayq News

Top Hong Kong market regulator revises Crypto policies following JPEX scandal

Todayq News

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