Securities watchdog to steps up information dissemination and investor education after JPEX turmoil

The Securities and Futures Commission (SFC) set to roll out measures to reinforce information dissemination and investor education, including publishing four lists about virtual asset trading platforms (VATPs), after the potential fraud case involving the cryptocurrency exchange JPEX.

Julia Leung Fung-yee, the chief executive of the securities watchdog, said SFC will strengthen the information release by issuing lists of licensed VATPs, closing-down VATPs, deemed licensed VATPs, and VATP applicants transparently and timely.

Leung stated that the goal of disclosing the "list of VATP applicants" is to evaluate whether the platforms have made misleading or false statements, and it does not imply that the relevant platforms have been licensed.

"We would strengthen investor education to increase awareness of fraud prevention," she added. "Hoping that the public would be more aware of the potential risks of investing in virtual assets." 

Head of the Fintech unit of the SFC, Elizabeth Wong Lok-yan, said that four companies are applying for licenses, including Hong Kong Digital Asset EX Limited (HKbitEx), Hong Kong BGE Limited, HKVAX, and Victory Fintech Company Limited.

To help the public more easily identify suspicious platforms and enhance awareness, the SFC will issue a dedicated list of suspicious VATPs which is easily accessible and with prominence on the SFC's website. 

The SFC will also consider providing more information about these VATPs to alert investors at an earlier stage. 

To enhance investor education, a series of campaigns to raise public awareness of fraud prevention would be launched by the SFC and the Investor and Financial Education Council.

SFC said the JPEX incident highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence, while it also shows the importance of disseminating information to the investing public.