Crypto Exchange JPEX Suspends Trading Activities Amid Regulatory Scrutiny
Crypto exchange JPEX has halted certain trading activities on its platform due to increased regulatory scrutiny from local and international authorities. The Hong Kong Securities and Futures Commission (SFC) issued a statement expressing serious concerns about JPEX, referring to it as an unregulated virtual asset trading platform. The SFC also accused social media influencers of actively promoting JPEX’s products and services in Hong Kong. In response, the SFC alerted the police, leading to an investigation by the Commercial Crime Bureau.
Delisting Transactions on Earn Trading Interface
In light of the warning from the SFC and the ongoing police investigation, JPEX released a press release stating that all transactions on its Earn Trading interface would be delisted starting from September 18. Customers were no longer able to place new Earn Orders after that time.
Liquidity Shortage and Market Maker Issues
JPEX faced a liquidity shortage that resulted in the suspension of its operations. This shortage was caused by third-party market makers who allegedly froze funds after negative news about the exchange emerged. JPEX is currently in negotiations with these market makers to resolve the liquidity issue. However, the details of the negotiations will be announced after they are concluded.
The police received 83 complaints about JPEX, involving digital assets worth around $4.3 million. A social media influencer linked to JPEX, Lam Zuo, was arrested by the Hong Kong Police Commercial Crime Bureau for promoting the unregulated crypto exchange online. These incidents have raised further concerns about JPEX’s practices.
Hot Take: JPEX Faces Regulatory Scrutiny and Operational Challenges
JPEX’s suspension of trading activities amid increasing regulatory scrutiny from the SFC and police investigation highlights serious concerns surrounding the platform. The accusations of being an unregulated virtual asset trading platform and allegations of social media influencers promoting its services further tarnish JPEX’s reputation. The liquidity shortage and issues with third-party market makers freezing funds add to the operational challenges faced by JPEX. With ongoing investigations and arrests related to JPEX, it remains to be seen how the exchange will navigate these obstacles and regain trust from its customers and regulators.
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