Hong Kong Chief Executive John Lee: Very concerned about the fraud case involving the JPEX trading platform, implementing effective regulatory measures to protect investors

ChainCatcher news, according to Hong Kong's Sing Tao Daily, the Chief Executive of the Hong Kong Special Administrative Region, John Lee, expressed his concern on September 21 during a speech at a reception celebrating the 74th anniversary of the founding of the People's Republic of China and the 26th anniversary of the return of Hong Kong to China. He mentioned a fraud case involving a virtual asset trading platform that has not obtained a license. He believes that investor education is very important, and the financial services sector must clearly inform investors of the risks when recommending any investment projects. This incident highlights the importance of investing in licensed and regulated virtual asset trading platforms; otherwise, investors find it difficult to obtain protection. He stated that the SAR government's policy is to implement an effective regulatory system to protect investors; to ensure that relevant information is disclosed transparently; and to emphasize and promote investor education.

In addition, Legislative Council member Lee Wai-hung stated during his speech that the JPEX incident proves that establishing a sound licensing system for virtual assets in Hong Kong is the right move. He urged the public to use licensed institutions and reputable companies, and not to easily trust unlicensed so-called internet celebrities or investment experts. He reminded the public that no investment product offers extremely high returns with no risk at all.

The virtual asset trading platform JPEX has recently been named by the Hong Kong Securities and Futures Commission as operating without a license. According to Hong Kong media reports, the police have arrested 11 people in connection with the case, involving an amount of approximately HKD 1.3 billion (about RMB 1.195 billion).