Rephrase and rearrange the whole content into a news article of 350 words. Make sure whole content is in narrative style with h2 and h3 headings and there is no plagiarism involved compare with the following article:
Recent scandals have not led to the removal of Hong Kong’s one-year grace period for cryptocurrency exchanges, according to local news reports. Julia Leung, the CEO of Hong Kong’s Securities and Futures Commission, acknowledged that fraud could persist even after the grace period concludes, indicating that there are no immediate plans to alter the grace period or other measures.
Implemented in June, new regulations state that cryptocurrency exchanges operating in Hong Kong must acquire a virtual asset service provider (VASP) license from the city’s Securities and Futures Commission June 2024. However, unregistered exchanges are currently allowed to continue their operations during the transitional phase.
Hong Kong has recently experienced several crypto-related scandals. In September, unlicensed crypto exchange JPEX collapsed due to allegations of a Ponzi scheme, resulting in 66 arrests and approximately 1.6 billion Hong Kong dollars ($205 million) in losses.
On November 25, another unlicensed exchange named Hounax reportedly defrauded HK victims of 148 million HKD ($18.9 million) through a suspected Ponzi scheme. The scammers posed as investment experts, enticing users with promises of substantial returns. However, when users attempted to withdraw their funds, they discovered that it was not possible.
Let us know what you loved about this article, what could be improved, or share any other feedback filling out this short form.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.