Hong Kong Securities Regulator Warns Against Crypto Exchange JPEX
The Hong Kong Securities and Futures Commission (SFC) has issued a strong warning against the use of the cryptocurrency exchange JPEX. The commission accuses the platform of displaying “suspicious features” and spreading misleading information about its licensing status. The SFC has clarified that JPEX is not regulated by them.
False and Misleading Statements by JPEX
The SFC expressed concerns about false and misleading statements made by online influencers and virtual asset money changers regarding JPEX’s supposed application for a virtual asset trading platform (VATP) license in Hong Kong. The SFC emphasized that no entity within the JPEX group is licensed or has applied for a VATP license in Hong Kong.
Exercise Caution with Investment Opportunities
Investors have been advised to be cautious when encountering investment opportunities that seem “too good to be true.” The SFC highlighted that investment advice, especially on social media platforms, is often provided by paid promoters who may lack the expertise of investment professionals. The regulatory agency has taken proactive steps to address this issue by notifying relevant influencers, opinion leaders, and over-the-counter shops to stop promoting JPEX and its services.
JPEX’s False Claims
JPEX’s website claims that the platform is “licensed and recognized” to facilitate virtual asset trading, citing overseas regulators. However, the SFC has deemed this claim to be false. In response, JPEX maintains its intention to apply for a license, stating that it complies with regulations in different regions.
SFC’s Efforts to Regulate Crypto Activities
The SFC’s warning is part of its broader effort to regulate the increasing digital asset activities in Hong Kong. Despite the bear market, cryptocurrency scams in the city reportedly doubled to approximately $217 million last year. The SFC introduced its VATP regulatory framework earlier this year and has directed investors to verify licensed exchanges from its official list.
Hot Take: Hong Kong Securities Regulator Cracks Down on Crypto Exchange JPEX
The Hong Kong Securities and Futures Commission (SFC) has issued a stern warning against the cryptocurrency exchange JPEX, accusing it of suspicious features and misleading information. The SFC clarified that JPEX is not regulated or licensed by them. This warning is part of the SFC’s broader efforts to regulate the growing digital asset activities in Hong Kong. Investors are urged to exercise caution with investment opportunities that seem too good to be true, especially on social media platforms where paid promoters may lack expertise. The SFC has taken proactive steps to stop the promotion of JPEX by notifying relevant influencers and over-the-counter shops. It is important for investors to verify licensed exchanges from the official list provided by the SFC.
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