The Hong Kong Web3 community is grappling with the fallout from the JPEX incident, which led to alleged fraud totaling HK$1.6 billion ($204 million) and resulted in the arrest of at least 20 individuals. As reported by CoinTelegraph, the incident prompted the formation of a special task force involving Hong Kong’s Securities and Futures Commission (SFC) and the local police.
This collaborative effort aims to strengthen the oversight of virtual-asset trading platforms and ensure the ethical conduct of operators in the crypto landscape. The working group between the Securities and Futures Commission and law enforcement officials will “enhance collaboration in monitoring and investigating illegal activities related to virtual-asset trading platforms,” the financial watchdog said in a statement last week.
In this context, key players in Hong Kong’s Web3 industry have issued a joint statement to offer their perspectives and propose solutions.
The statement begins: “We represent various organizations committed to developing Hong Kong’s Web3 ecosystem, and we have taken notice of the situation at JPEX.” It goes on to commend the Hong Kong government’s swift action: “We strongly believe that the Government of the Hong Kong Special Administrative Region has taken the correct approach in its commitment to the future growth of Web3.”
These industry leaders, representing organizations such as Animoca Brands, Web3 Harbour, OSL, Stratford Finance, Matrixport, VSFG, the Crypto Council for Innovation, WHub, and Nano Labs, have expressed support for the newly formed task force. “Against the backdrop of recent enforcement actions against JPEX, we wish to express our unambiguous support for strict and swift enforcement,” the statement reads.
Source: Technode Global