OSL, a compliant exchange in Hong Kong, recently in an interview expressed that the government has been "swift" in approving cryptocurrency products.

This is despite the negative association from the recent JPEX scandal, where officials arrested over 20 suspects in connection to over HK$1.5 billion in affected assets.

OSL predicts a surge of Hong Kong banks entering the crypto space, particularly in dealing with tokenised virtual assets.

Working Together

Financial technology solution providers suggest that future collaborations between banks and tokenised platforms may further fuel the development of the virtual asset industry.

BC Technology, the parent company of OSL, affirmed government support for licensed virtual asset development, emphasizing the consistently stringent regulatory environment.

OSL's Chief Financial Officer, Davin Wu, also noted an accelerated pace in regulatory product approvals.

He also remarked on stricter scrutiny faced by non-compliant platforms, anticipating a decline in their past aggressive advertising.

JPEX Rugpull

In October, authorities in Hong Kong and Macau executed arrests related to the JPEX cryptocurrency exchange case, seizing a sum of $2.8 million, which was made up of a combination of cash and gold.

The crackdown also led to the forfeiture of casino assets and the recovery of $1.7 million in cash.

The operation revealed the connection between the suspects and over-the-counter cryptocurrency changer shops.

Regulators were swift to act in response to this debacle, with over 20 suspects arrested as of time of publication.