Cryptocurrency-related crime in Hong Kong has tripled in three years, with 2023 cases involving approximately $611 million.
In the past three years, the number of virtual asset-related criminal cases in Hong Kong has increased significantly. The number of reported cases was 1,397, 2,336 and 3,415 respectively, and the amount involved was HK$824 million, HK$1.704 billion and HK$4.398 billion respectively, which increased nearly two times in the same period.
Law enforcement agencies collect specific statistics on individual cases regarding arrests and legal proceedings based on the report. In the JPEX case, for example, as of February 20, 70 people had been arrested, but no formal charges had been filed against them.
Hong Kong lists suspicious trading platforms
In response to questions from Legislative Council members, Hong Kong's Secretary for Financial Services and the Treasury Paul Chan said that the Securities and Futures Commission (SFC) has strengthened information disclosure since September last year.
These efforts include publishing a large amount of information about virtual asset trading platforms, such as the "List of Suspicious Virtual Asset Trading Platforms" to provide transparent and timely information to the public. As of February 14, the list contains 14 trading platforms.
As of February 2, the SFC and the police have exchanged intelligence on more than 100 virtual asset trading platforms or related activities. The decision on whether to launch a special investigation into individual trading platforms and activities is based on a variety of criteria, including their connection with Hong Kong, possible violations of relevant laws, and the scale of people and funds involved.
Meanwhile, the JPEX case in Hong Kong last year was also serious. After a liquidity crisis, the exchange ceased operations, triggering a thorough investigation by the SFC. Thousands of customer complaints followed, with losses exceeding $152 million. So far, eight suspects have been detained, and authorities have frozen about $1.9 million in their accounts and confiscated properties worth $5.6 million.
Hong Kong cracks down on cryptocurrency service providers
The U.S. Treasury Department launched a public consultation on February 8 on a proposed legislation for licensing virtual asset trading service providers to further strengthen the regulatory framework. The consultation period will last until April 12.
The U.S. Treasury, in collaboration with the Hong Kong Monetary Authority, launched a public consultation on the regulation of stablecoin issuers in December 2023, which ended on February 29.
The Government plans to submit the draft regulations on the licensing system to the Legislative Council as soon as possible, depending on the results of the consultation and the progress of the preparatory work.
Meanwhile, HTX (formerly known as Huobi) recently applied to provide cryptocurrency services in Hong Kong, joining a growing list of applicants. It comes shortly after another cryptocurrency exchange, Bybit, also applied to the SFC for permission to operate in the region. #加密货币安全 #香港