Cryptocurrency Crimes in Hong Kong Almost Tripled Over the Last 3 Years

Over the previous three years, the incidences of digital asset-related crimes in Hong Kong have considerably elevated. The instances reported amounted to 1,397, 2,336, and three,415, involving HKD 824 million, HKD 1.704 billion, and HKD 4.398 billion, respectively, practically tripling throughout this era.

Legislation enforcement has gathered particular statistics for particular person instances per the report relating to arrests and authorized proceedings. For instance, within the JPEX case, as of February 20, 70 people had been apprehended, with no formal fees filed in opposition to them but.

Hong Kong’s Lists Suspicious Buying and selling Platforms

In accordance with a statement by Christopher Hui, the Secretary for Monetary Providers and the Treasury of Hong Kong, in response to a question from a legislator, the Securities and Futures Fee (SFC) has intensified its data disclosure efforts since September final yr.

The efforts embrace publishing intensive data relating to digital asset buying and selling platforms, equivalent to a “listing of suspicious digital asset buying and selling platforms,” to offer clear and well timed data to the general public. As of February 14, this listing contained 14 buying and selling platforms.

The SFC and the Police had exchanged intelligence concerning over 100 digital asset buying and selling platforms or associated actions as of February 2. The dedication relating to whether or not to provoke a particular investigation into particular person buying and selling platforms and actions relies on varied standards, together with their connection to Hong Kong, potential violations of related legal guidelines, and the dimensions of individuals and funds concerned.

In the meantime, the JPEX case was main in Hong Kong final yr. Following a liquidity disaster, the change ceased operations, bringing a couple of thorough investigation by the SFC. 1000’s of buyer complaints got here in, and the loss surpassed $152 million. To date, 8 suspects have been detained, and authorities have frozen about $1.9 million of their accounts and confiscated property valued at $5.6 million.

Hong Kong Cracks Down on Crypto Service Suppliers

The Treasury Division initiated a public session on February 8 relating to the legislative proposal for licensing digital asset buying and selling service suppliers to boost the regulatory framework additional. The session interval will final till April 12.

In collaboration with the Hong Kong Financial Authority, the Treasury Division commenced a public session in December 2023 in regards to the regulation of stablecoin issuers, which concluded on February 29.

Relying on the outcomes of those consultations and the development of preparatory work, the federal government goals to swiftly submit a draft regulation pertaining to the licensing regime to the Legislative Council.

In the meantime, HTX, beforehand referred to as Huobi, not too long ago applied to offer cryptocurrency companies in Hong Kong, becoming a member of a rising listing of candidates. This transfer follows intently after Bybit, one other cryptocurrency change, additionally filed for licensing approval from the SFC to function inside the area.