This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Hong Kong’s crypto industry has been hit by a scandal involving the Dubai-based crypto exchange JPEX, which caused losses for over 2,500 Hong Kong citizens. However, the government remains committed to its Web3 plans and has no intention of abandoning them. In fact, the government plans to tighten regulations on the crypto industry to prevent such incidents from happening again. The Financial Services and Treasury Secretary, Christopher Hui, assured the public that the scandal would not affect Hong Kong’s determination to grow the Web3 market. The government will implement rules to regulate crypto and increase efforts to protect investors. The Securities and Futures Commission (SFC) has established a joint task force with the Hong Kong Police to tackle illicit activities on crypto exchanges. The SFC will issue guidelines on tokenized securities and oversee the tokenization of investment products. The SFC has also released a list of licensed virtual assets trading platforms and those facing compliance issues or suspected of suspicious trading. Despite the JPEX scandal, Hong Kong remains committed to the future of web3 and digital assets in the region.