The supervisory body regulating the securities and futures market in Hong Kong teams up with the city’s police force to form a working group that aims to combat illegal activities on virtual asset trading platforms (VATPs).
In a statement, the Securities and Futures Commission (SFC) says it has established a dedicated working group with the Hong Kong Police Force (HKPF) following a high-level meeting between the two parties in late September.
The SFC says the group is composed of representatives from its Enforcement Division and Intermediaries Division and HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau and Financial Intelligence and Investigations Bureau.
The working group will facilitate the sharing of information on suspicious activities and violations of crypto exchanges, implement a mechanism for evaluating risks posed by suspicious digital asset platforms and improve coordination and collaboration between the regulator and the police in related investigations.
Says SFC’s executive director of Enforcement, Christopher Wilson,
“We have always valued our working relationship with the Police and we look forward to our even closer collaboration in deploying our respective expertise and resources in combatting problematic VATPs and protect the interest of investors.”
The development comes amid a slew of breaches committed by crypto exchanges. Last month, the chief executive of Istanbul-based crypto exchange Thodex was sentenced to over 11,000 years in prison for stealing $2 billion worth of crypto assets from the platform’s customers.
Former crypto golden boy Sam Bankman-Fried is also currently facing charges for using customer funds of the FTX exchange.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney