Hong Kong Forms Virtual Asset Task Force After Surge in Crypto Scams and 70 Arrests in JPEX Case

Hong Kong Launches New Task Force To Chase Crypto Fraudsters Amid Surge In Virtual Asset Scams

Hong Kong is stepping up its battle against virtual asset scams with the creation of a dedicated Virtual Asset Intelligence Task Force.

Security Secretary Chris Tang Ping-keung highlighted that the city has seen a sharp rise in fraud cases linked to digital assets, prompting authorities to act swiftly to prevent further losses.

Why Virtual Asset Platforms Are Becoming Targets For Scammers

Scammers are increasingly exploiting virtual asset platforms to move stolen funds, creating a new challenge for regulators.

Tang stressed the need for a “stop payment” mechanism comparable to traditional banking responses, allowing platforms to freeze suspicious transactions immediately.

Chris Tang Ping-keung is a Hong Kong law enforcement administrator who has served as the Secretary for Security of Hong Kong since June 2021.

This change aims to limit the movement of illicit funds and reduce the risk for users.

Police Crackdown Intensifies Following JPEX Scandal

The formation of the task force comes amid fallout from the JPEX scandal, which has drawn attention to the scale of crypto-related crime in the city.

Tang confirmed that police are pursuing the platform’s leaders relentlessly, stating:

“Police are doing their best to locate the whereabouts of the leader of the platform. We will by all means hold the culprits accountable for their crimes.”

More than 70 arrests have already been made in connection with the scandal, demonstrating the authorities’ commitment to enforcing accountability.

Regulators Push For Stronger Oversight Of Virtual Asset Providers

Financial Secretary Paul Chan Mo-po outlined plans for stricter regulations on virtual asset service providers to ensure platforms can act quickly when fraud is detected.

Paul Chan Mo-po is a Hong Kong accountant and politician who has served as the Financial Secretary of Hong Kong since 2017.

Collaboration between authorities and platforms is now central to operational protocols, enabling immediate responses to prevent further losses.

These measures reflect Hong Kong’s effort to strengthen investor protection in an increasingly digital financial landscape.

Can Platforms Survive Without Stronger Protections And Oversight?

Coinlive views the surge in scams as a critical test for the sustainability of virtual asset platforms.

While authorities are moving quickly, the events highlight gaps in platform accountability and operational safeguards.

The question now is whether existing platforms can adapt fast enough to protect users while remaining competitive in a high-risk market.

Projects that fail to implement robust security measures and transparent protocols may struggle to survive in an environment where regulatory scrutiny and user expectations are rising.