The freezing of funds on Hong Kong-based crypto exchange JPEX highlights the necessity for robust crypto licensing laws, according to the territory’s leader, John Lee.
On Tuesday, Lee informed reporters that six individuals, including two social media influencers, were arrested by Hong Kong police following over a thousand complaints involving a total of $128 million filed against the exchange. The South China Morning Post reported this on Monday.
Lee’s website published his remarks, stating, “This incident highlights the importance that when investors want to invest in virtual assets, then they must invest on platforms that are licensed and regulated by the Hong Kong Securities and Futures Commission (SFC). We will be doing more public education for investors to know the risks.”
The SFC accused JPEX of operating without a license, while the crypto exchange expressed concerns that its “unfair” treatment by regulators could jeopardize Hong Kong’s aspirations to become a Web3 hub.