In the wake of the recent JPEX Rugpull incident, OSL, a compliance-focused exchange in Hong Kong, disclosed that the local government had expedited the approval process for cryptocurrency products. This move aims to boost the compliant development of the industry, signaling a proactive stance following the shockwaves caused by the JPEX debacle.
Stricter Monitoring for Crypto Platforms
According to reports from local media, the JPEX incident stirred considerable controversy, prompting licensed virtual asset platform operators to anticipate faster approval timelines for new products. Financial technology solution providers noted that building future tokenized platforms in collaboration with banks could significantly enhance the virtual asset industry’s credibility in the public’s eyes.
BC Technology (0863), a subsidiary of OSL and a licensed virtual asset platform company in Hong Kong, revealed insights on the matter. Hu Zhenbang, the group’s Chief Financial Officer, emphasized that the government has consistently supported the licensed virtual asset industry, maintaining stringent regulatory oversight. Post-JPEX, Zhenbang observed an acceleration in product approvals, indicating a commitment to reinforcing compliance.
Non-compliant platforms will face stricter monitoring in the aftermath of the JPEX incident. To avoid legal repercussions, these platforms will no longer be permitted to engage in extensive public promotion at MTR stations, as was common in the past.
Chen Yaowen, Chief Digital Director and Financial Technology Innovation Director of Sifang Innovative Hong Kong, a financial technology solution provider specializing in virtual asset tokenization, expressed optimism. He highlighted the pivotal role that banks could play in fostering the industry’s growth, particularly by integrating with tokenized platforms.
Yaowen clarified that with the public’s trust in banks and oversight from the China Securities Regulatory Commission, banks can ensure compliant operations in the crypto industry. It would enable the public to seamlessly trade virtual assets on regulated platforms, with secure withdrawals and deposits, presenting banks with substantial opportunities in tokenized virtual assets and secure custody wallets.
Nevertheless, the collaboration between compliant platforms, government regulators, and established financial institutions is anticipated to drive the region’s ascent in the global virtual asset market.