The Hong Kong Securities and Futures Commission (SFC) Warns Investors About Unlicensed Cryptocurrency Exchange
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to investors regarding JPEX, a cryptocurrency exchange that operates without regulatory approval. The SFC highlighted that none of the entities within the JPEX Group have obtained a license or applied to operate a regulated virtual asset trading platform (VATP).
JPEX relies on social media influencers, key opinion leaders (KOLs), and over-the-counter (OTC) crypto money changers to promote its products and services in Hong Kong. The SFC has raised concerns about JPEX’s activities, including false statements on its website claiming regulation by foreign agencies, offering high annual yields of up to 21%, and reports of difficulties withdrawing assets and changes in investments.
Hong Kong Residents Advised to Be Cautious
The SFC urges residents to exercise caution when dealing with unregulated platforms like JPEX. It emphasizes that funds lost due to bankruptcy, hacks, or misappropriation may not be recoverable. The regulator also warns against overly optimistic investment returns and cautions against following investment advice from influencers on social media who may lack sufficient financial expertise. Influencers and OTC shops have been instructed to cease promoting JPEX.
JPEX Responds to SFC Warning
In response to the SFC’s warning, JPEX mentioned that it had publicly announced its intention to seek a crypto trading license in Hong Kong earlier this year. However, it had not yet submitted the application due to ongoing preparations and document requirements. JPEX expressed concerns about the impact of the SFC’s statement on Hong Kong’s aspirations to become a web3 hub and hinted at the possibility of withdrawing its license application in the region.
Hot Take: SFC Warns Investors About Unregulated Cryptocurrency Exchange in Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has cautioned investors about JPEX, an unlicensed cryptocurrency exchange operating in Hong Kong. The SFC raised concerns about JPEX’s false regulatory claims, high investment yields, and reports of difficulties faced by retail investors in withdrawing assets. It advises residents to be cautious when dealing with unregulated platforms, highlighting the potential loss of funds that may not be recoverable. The regulator also warns against overly optimistic investment returns and urges caution when following investment advice from influencers lacking financial expertise. In response, JPEX expressed its intention to seek a crypto trading license but hinted at withdrawing its application due to pressure from the SFC’s actions.
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