Hong Kong cryptocurrency industry insiders have pointed out that since the JPEX incident, the number of people trading virtual currencies has not decreased but instead increased. However, their attitudes have become more cautious compared to before, and they ask more questions.
Since the JPEX incident, the number of people trading virtual currencies in Hong Kong has not decreased but instead increased. However, their attitudes have become more cautious compared to before, and they ask more questions.
The Hong Kong Securities and Futures Commission (SFC) has published a list of nine “suspicious cryptocurrency exchanges,” and the amount of money lost in the JPEX case has risen to HKD 1.61 billion.
Hong Kong cryptocurrency exchange JPEX, which suffered a collapse in September, has seen the number of people reporting fraud surpass 2,623 and the amount of money involved exceed HKD 1.61 billion (about NTD 6.3 billion), according to the police.
However, despite the JPEX incident occurring over three months ago, the attitudes of Hong Kong citizens towards cryptocurrencies seem to have been largely unaffected. According to a report by Hong Kong’s TVB, insiders in the local cryptocurrency industry have pointed out that the public’s understanding and active participation in virtual currencies have significantly increased following the JPEX collapse.
However, some JPEX investors have expressed genuine fear towards cryptocurrency investments and intend to avoid them in the future.
Licensed exchanges in Hong Kong that are authorized to provide services to retail investors have also reported a significant increase in the number of new account openings since the JPEX incident. This may be related to the SFC naming JPEX as an unlicensed platform and emphasizing the high risks associated with unlicensed platforms. OSL’s Executive Director and Head of Regulatory Affairs, Dave Chapman, stated that:
“Some industry insiders have also noted an increase in the number of people signing up for cryptocurrency investment courses. In addition to wanting to make money, the public is also learning how not to be deceived due to the impact of the JPEX incident. However, he believes that currently, only two platforms have obtained licenses from the SFC, which may still lead some investors to take risks and choose unlicensed platforms for investment.”
Blockchain technology consultant Leo Siu-chung suggests that the SFC should expand the tradable types of cryptocurrencies under controllable risks.
It is worth noting that the Hong Kong SFC has been more proactive in disclosing a list of suspicious trading platforms since the JPEX incident. Currently, besides the previous nine platforms, two more platforms have been added in mid-December: Bitbank and LonShiX.
The 11 virtual asset platforms currently listed as suspicious by the SFC are:
1. Bitbank
2. LonShiX
3. Hong Kong Digital Research Institute
4. BitCuped
5. HOUNAX
6. FUBT Exchange (i) https://futu-pro.com; ii) https://futubit.com
7. EFSPD
8. JP-EX Crypto Asset Platform Pty Ltd
9. JPEX Technical Support Co. Pty Ltd
10. https://arrano.network
11. OSL Exchange
The Hong Kong government, in addition to prioritizing regulation of virtual asset exchanges, has also announced plans to regulate over-the-counter (OTC) cryptocurrency dealers that are widely involved in the JPEX case. Hong Kong’s Financial Secretary, Paul Chan, stated in October that the Hong Kong authorities are considering amending the laws governing the operation of OTC cryptocurrency exchanges and formulating relevant regulatory arrangements. However, no timetable for the introduction of OTC regulations has been announced.
Related Reports:
– JPEX Hong Kong Case Involving Over NTD 6.5 Billion, Charlene Chen Assumed “Defendant” for the First Time
– Charlene Chen’s Suspected Money Laundering Charges Intensify! Prosecutors Change JPEX Case to “Defendant”; Taiwanese Partner Tony Released on NT$1.5 Million Bail
– 40 Days of Silence from JPEX: Discussing Fund Repurchases with Market Makers, Hinting at Exchange Restart?
– Charlene Chen’s Discomfort: Final Payment of Tens of Millions of Dollars in JPEX Endorsement Fees Not Received, Not Worried About Being a Defendant, Considering Not Touching Cryptocurrencies Again