The recent alleged scandal involving crypto exchange JPEX in Hong Kong has not deterred the government from pursuing its Web3 vision for the region. Despite the financial scandal and allegations of fraud, the government remains determined to grow the Web3 market. Hong Kong plans to tighten its crypto regulations in response to JPEX’s actions, with the Securities and Futures Commission (SFC) warning against unlicensed promotion of services. The SFC has also established a task force with the police to address illicit crypto exchange activities and has updated its policies on crypto sales and requirements. As part of its future regulatory framework, the government aims to issue guidance on tokenized securities and the tokenization of SFC-authorized investment products. Crypto regulations will be expanded to cover buying and selling beyond regulated trading platforms. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau are set to release a joint consultation on stablecoins, seeking feedback from a previous discussion paper. The HKMA will also consult the sector on guidance for banks providing digital asset custodial services. Despite the scandal, Hong Kong remains committed to advancing its Web3 initiatives and ensuring a regulated and secure crypto market.

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Information	Details
Geography	Asia
Countries	🇭🇰
Sentiment	neutral
Relevance Score	1
People	Christopher Hui
Companies	Hong Kong Monetary Authority (HKMA), JPEX, Securities and Futures Commission (SFC), Financial Services and the Treasury Bureau
Currencies	None
Securities	None