Evolution

JPEX

Force

<div class="insidebitcoins">
 <p>In response to the dynamic developments within the digital asset industry, the Securities and Futures Commission (SFC) of Hong Kong has outlined its intentions to revise existing cryptocurrency sales frameworks and requirements. This move comes as a proactive response to the continuously evolving nature of the digital asset market.</p>
 <p>The SFC recently published an amendment notice on October 20, addressing five significant aspects of the cryptocurrency industry. These areas encompass the distribution of virtual asset (VA)-related products, the provision of cryptocurrency dealing services, the operation of asset management platforms, advisory services, and the implementation of necessary steps.</p>
 <p>One crucial factor highlighted by the SFC is the worldwide variance in regulatory environments, despite the widespread adoption and growing popularity of virtual assets. The risks associated with investments in digital assets, particularly issues related to anti-money laundering (AML) and counter-financing terrorism (CFT), persist in the crypto market. Given this backdrop, the SFC and Hong Kong authorities prioritize safeguarding investor interests in light of the burgeoning cryptocurrency regulatory landscape.</p>
 <p>To address these concerns, the SFC plans to introduce more stringent measures and requirements aimed at mitigating the risks linked with digital assets. The comprehensive amendment notice outlines restrictions on the sale of certain assets. For instance, complex VA-related products, such as crypto exchange-traded funds and offerings based outside Hong Kong, will only be accessible to professional investors. Furthermore, intermediaries operating in the crypto space will be mandated to assess whether investors possess substantial knowledge about trading in virtual assets before executing any transactions.</p>
 <h2 id="hong-kong-s-regulatory-oversight-in-the-crypto-market">Hong Kong’s Regulatory Oversight in the Crypto Market</h2>
 <p>As of the present moment, Hong Kong lacks specific legislative policies governing virtual assets (VA), and there is no designated agency tasked with overseeing the evolving market landscape. However, several financial regulatory bodies, including the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), and the Insurance Authority (IA), have issued guidelines aimed at supervising activities within the industry.</p>
 <p>In cases where a virtual asset exhibits characteristics defined under Cap 571 of Hong Kong’s Securities and Futures Ordinance (SFO), it falls under the regulatory purview of the SFC and relevant laws. The recent issuance of guidelines followed a series of complaints involving more than 2,300 users of the JPEX crypto exchange, resulting in significant losses of funds and assets worth millions of dollars.</p>
 <p>The SFC revealed that the Dubai-based trading platform had been operating without the necessary license for virtual asset trading. Investigations further disclosed that most of the victims were inexperienced investors who had been promised substantial returns. The unlicensed exchange had collaborated with influencers to promote unregistered products and services.</p>
 <p>To prevent the recurrence of such incidents, the SFC has joined forces with the Hong Kong Police Force (HKPF) to establish a dedicated crypto-focused unit aimed at curbing illicit activities. An official announcement made on October 4 confirmed that this new unit would continue investigating the JPEX scandal, with additional arrests expected to follow. This collaborative effort seeks to provide investors with a higher level of protection within the cryptocurrency market.</p>
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
  <p lang="en" dir="ltr">**SFC Warns Against Fraudulent Crypto Project: ⚠️ The Hong Kong Securities and Futures Commission (SFC) cautions investors about the fraudulent cryptocurrency project BDB, emphasizing that claims of collaboration with the SFC are misleading. Investors are urged to exercise…</p>
  <p>— BitcoinWorld Media (@ItsBitcoinWorld) October 20, 2023</p>
 </blockquote>
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 <h3 id="related-news">Related News</h3>
 <ul>
  <li>Hong Kong Is World’s Most Crypto-Ready Hub For Second Year</li>
  <li>Hong Kong To Publish List of Suspicious Crypto Platforms Following JPEX Scandal</li>
  <li>Binance Users in Hong Kong Hit By $450K Phishing Scam As Local Police Issue Urgent Warning</li>
  <li>Two More Detained In JPEX Scandal as Hong Kong Sets Up Group To Crack Down on Rogue Crypto Platforms</li>
 </ul>
 <p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/hong-kong-s-sfc-proposes-crypto-market-regulatory-updates-in-response-to-market-evolution-tbt86325.html">https://thebittimes.com/hong-kong-s-sfc-proposes-crypto-market-regulatory-updates-in-response-to-market-evolution-tbt86325.html</a></p>
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Hong Kong’s SFC Proposes Crypto Market Regulatory Updates in Response to Market Evolution

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