SFC Warns Public of Allegedly Fraudulent Crypto-related Activities
Hong Kong’s SFC closely monitors unauthorised crypto products and activities conducted by entities not regulated by them. As of 8 April 2024, they have listed 27 suspicious crypto products and businesses on their alert list, emphasizing their commitment to investor protection.
FSTB Consultation Paper: Regulating OTC Virtual Asset Trading Under New Licensing Regime
The FSTB is proposing to introduce a new licensing regime to regulate providers of over-the-counter trading of virtual assets under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance
SFC issues guidance for tokenisation of SFC-authorised investment products and intermediaries engaging in Hong Kong tokenised securities-related activities
The SFC issued circulars providing guidance on the tokenisation of investment products and conduct-related guidance to intermediaries engaging in tokenisation of securities-related activities in Hong Kong.
Hong Kong Police Arrest Suspects in JPEX Scandal
The Hong Kong police arrested eighteen individuals on charges of suspected fraud in connection with unlicensed crypto exchange JPEX. According to reports, the alleged fraud involved over 2000 victims and resulted in losses of more than HK$1.5 billion. This news followed the Hong Kong Securities and Futures Commission’s (SFC) releasing of two public warnings in September 2023 regarding JPEX’s false claims to be regulated and its involvement in prohibited activities. In this newsletter the details behind the scandal are explored and the current investigation and the potential ramifications of the situation are considered.
HKMA Publishes 2023 Fintech Promotion Roadmap for Hong Kong
Hong Kong is on track to become a global Fintech hub with the HKMA’s announcement of its 2023 Fintech Promotion Roadmap. This roadmap seeks to promote Fintech adoption in the wealth management, insurance and green investment sectors, and the initiative is further supported by the HKMA’s Tech Baseline Assessment and Fintech Adoption Study. In this newsletter the objectives, strategies and implications of the HKMA’s Fintech Promotion Roadmap and how it can help the financial services industry keep up with the rapidly evolving Fintech sector are all explored.
SFC Warns Unlicensed Crypto Exchanges re. Improper Conduct
There are a number of existing virtual asset trading platforms (VATPs) operating in Hong Kong. How do existing VATPs comply with Hong Kong’s 2023 AMLO licensing regime? In this newsletter we set out the transitional arrangements that have been put in place to help existing VATPs transition to the new regime, including the deeming arrangement that provides an opportunity for exchanges to become licensed from 31 May 2024. Read on to find out more.