No SFC License for JPEX – Why?
The Securities and Futures Commission (SFC) of Hong Kong has warned the unregistered cryptocurrency exchange JPEX about the possibility of facing criminal charges for promoting its services without a license. The SFC is particularly concerned about JPEX’s high-yield service, which offers returns of up to 20% but is considered a highly risky investment. JPEX has been actively promoting its services through social media influencers, key opinion leaders (KOLs), and over-the-counter virtual asset money changers. However, none of the entities within the JPEX group hold a license from the SFC to operate a virtual asset trading platform, nor have they applied for one.
Concerns Raised by the SFC
The SFC has raised several concerns about JPEX, including deceptive claims about licenses, offering exceptionally high returns, reports of investors having difficulties withdrawing their assets, and suspicions about some of JPEX’s products not complying with the SFC’s regulatory framework. The SFC has informed relevant KOLs and over-the-counter shops about its concerns and has requested them to stop promoting JPEX and its services.
Investors, You Must Stay Vigilant!
The SFC can take control over entities engaging in fraudulent practices involving virtual assets and is prepared to take enforcement actions against those not adhering to regulations. Investors need to be cautious of scam offers, especially those promoted on social media platforms by KOLs without professional investment expertise. The SFC also warns against trading virtual assets on unregulated platforms due to significant risks. To protect yourself, do thorough research before investing, use regulated platforms, be wary of promises of high returns, and never share personal information or passwords.
Licensing Status
It is crucial to verify the licensing status of any virtual asset trading platform by referring to the SFC’s list of licensed platforms. JPEX has been on the SFC’s Alert List since July 8, 2022. Check the SFC-listed exchanges for trading virtual assets.
Hot Take: The SFC Warns Unregistered Cryptocurrency Exchange JPEX
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to unregistered cryptocurrency exchange JPEX for promoting its services without a license. The SFC’s concerns primarily revolve around JPEX’s high-yield service, which offers up to 20% returns but is considered highly risky. JPEX has been actively using social media influencers and over-the-counter virtual asset money changers to promote its services. However, none of the entities within the JPEX group hold an SFC license or have applied for one. The SFC has raised concerns about deceptive claims, high returns, difficulties in asset withdrawal, and potential non-compliance with regulatory frameworks. Investors are urged to stay vigilant, conduct thorough research, use regulated platforms, and avoid sharing personal information to protect themselves from scams.
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