JPEX Drama Shows Need for Crypto Regime, Hong Kong Leader Says

The freezing of funds connected Hong Kong-based crypto speech JPEX shows the request for beardown crypto licensing laws, the territory’s leader, John Lee, told reporters Tuesday.

Hong Kong constabulary arrested six people including 2 societal media influencers aft much than a 1000 complaints involving a full of $128 cardinal were filed astir the exchange, the South China Morning Post reported Monday.

“This incidental highlights the value that erstwhile investors privation to put successful virtual assets, past they indispensable put connected platforms that are licensed" and regulated by the Hong Kong Securities and Futures Commission (SFC), Lee said according to remarks published connected his website. “We volition beryllium doing much nationalist acquisition for investors to cognize the risks.”

The SFC accused JPEX of operating without a license, and the crypto speech has said its “unfair” attraction by regulators could jeopardize Hong Kong’s ambitions to go a Web3 hub.

While immoderate are acrophobic astir a tighter grip that could perchance beryllium imposed by crypto-skeptic Beijing, Hong Kong’s authorities has been compared favorably with those specified arsenic the U.S. that don’t connection the aforesaid regulatory clarity, by companies specified arsenic Ripple.