As reported last week, the Securities and Futures Commission (SFC) in Hong Kong has raised grave concerns about crypto platform JPEX, which has been actively marketing its services through influencers and over-the-counter virtual asset money changers. However, none of the entities within JPEX hold a license to operate a virtual asset trading platform in Hong Kong, prompting an investigation.
JPEX Fears SFC’s Vigilance, Shuts Down Trading Activities
In response, JPEX announced the suspension of some trading activities, impacting users’ ability to place new orders on its Earn Trading interface, according to the Bloomberg report. Interestingly, the platform is working to address liquidity issues with third-party market makers. The Hong Kong police are conducting an investigation based on the SFC’s referral, citing JPEX’s operation as an unlicensed entity.
So far, the police have received 83 complaints involving HK$34 million ($4.3 million) related to JPEX. Not only that, the platform, headquartered in Dubai, has also faced additional controversy over increased withdrawal fees and unaccounted staff at its Singapore booth. The outcome of the investigation remains uncertain. This situation underscores the growing regulatory scrutiny of the crypto industry. The reason for the sudden shutdown may be that some of JPEX’s products appear to be suspicious and may involve dealings that do not comply with the SFC’s regulatory framework.
What went Wrong?
However, the SFC’s warning comes amid efforts to develop Hong Kong’s presence as a cryptocurrency hub. Notably, this is one of the rare instances where these initiatives were put in place to attract individual investors to the region.
JPEX’s questionable actions have now raised doubts about the platform’s malpractices. It is evident that the unexplained rise in withdrawal fees of 999 USDT and the absence of staff at their Singapore 2049 booth have added to the uncertainty surrounding the platform.
A Celebrity Arrested in the Case!
Just now, reports came out that Hong Kong’s social media celebrity Lam Zuo has been arrested for promoting the controversial cryptocurrency exchange, JPEX, amid an ongoing investigation. As reported by local media, this arrest has a direct link to the fraudulent activity connected to the exchange. As investigations loom, JPEX’s future remains uncertain, a grave call for rigorous vigilance on crypto firms.
How many instances do we need to establish a clear guideline and protect user interest in the crypto space? We have FTX, Binance, and Coinbase dealing with similar charges, and the list will go on if something concrete is not suggested on time.