A shop of virtual currency exchange Coingaroo is closed and sealed by the police over a suspected fraud case, in Causeway Bay on Sept 18, 2023. (CALVIN NG / CHINA DAILY)

HONG KONG – The Hong Kong Special Administrative Region government would actively promote education to ensure investors are well-informed about the risks involved in investing in virtual assets and cryptocurrency, Chief Executive John Lee Ka-chiu said on Tuesday.

Speaking to the media ahead of the weekly Executive Council meeting, Lee said he was very concerned about a case of suspected fraud involving virtual asset trading platform JPEX, which “reflects the necessity for proper regulatory system”.

“The licensing regime that has been introduced is exactly for that purpose, that is, to protect investors so that they can invest under very effective regulatory system, to ensure that their assets and their investments are protected, and to ensure that there will be good risk-control system that ensures the money they put into the investment will not be abused by the platform,” he said.

Chief Executive John Lee Ka-chiu stressed that unlicensed exchanges could not exist in the market and a regulatory regime must be in place

Unlicensed exchange JPEX halted trading on Monday while police conducted an investigation into suspected fraud involving the company. Police arrested social media influencer Joseph Lam Chok and raided his office in Central as part of the probe.

“What is also very important is investors understand very well the operational mode and the risks involved and, most importantly, only invest on platforms that are regulated by the Securities and Futures Commission. This is the only way to ensure that their investments are protected,” the CE said.

He stressed that unlicensed exchanges could not exist in the market and a regulatory regime must be in place.

ALSO READ: JPEX halts trading amid police fraud investigation

Police and the SFC were set to hold a press conference on Tuesday to give more details about the JPEX incident and what they were doing to protect investors, he added.

Chief Executive John Lee Ka-chiu speaks to the media ahead of an Executive Council meeting on Sept 19, 2023. (PHOTO / HKSAR GOVERNMENT)

Night Vibes Hong Kong

Talking about the Night Vibes Hong Kong campaign, the CE said the whole intention and purpose was to develop a new culture for residents to enjoy their night activities more.

(Night) activities will mean more people; more people will mean more business and more consumption, which will be good for the overall economic development.

John Lee Ka-chiu, Chief Executive

“What we intend to do is to have it run as a very regular series of events, so that people can get out of their former habits of staying home early,” Lee said, adding that people will be interested to come out and stay perhaps longer in the evening after the COVID-19 pandemic. 

"Activities will mean more people; more people will mean more business and more consumption, which will be good for the overall economic development," he said.

The CE added that there would be new elements for the campaign and the government will be able to identify interesting points or attractions and focus on developing areas of special interests.

The entrepreneurship, the innovation and the vibrancy of Hong Kong could come back through testing at different places and then adding extra activities, he said.

READ MORE: Campaign to revitalize Hong Kong's nightlife

District Council election, stamp duty

Regarding the polling time of the District Council election to be held on Dec 10, the CE said the government placed a lot of importance to the polling and would announce details soon as the preparations were underway.

Asked if the government will lower the stamp duty for the first homebuyers, Lee said he had collected a number of views during the consultations for his upcoming Policy Address and the government would take them seriously and adopt suitable suggestions.