September 20, 2023
By Sharan Kaur Phillora
In a recent crackdown on unlicensed crypto activities, the Hong Kong authorities have apprehended six individuals, including two prominent social media influencers, related to an ongoing investigation into the crypto exchange, JPEX. According to a report by the South China Morning Post, JPEX, which is based in Hong Kong, has allegedly been operating without a proper license.
Here’s what we know:
The Securities and Futures Commission (SFC), the market regulatory body of Hong Kong, highlighted that they have catalogued over 1,408 complaints against JPEX, with the total value under contention reaching a staggering $128 million. Amid the mounting pressure, JPEX claimed that unfair practices by Hong Kong’s institutions and negative media coverage led to its third-party market makers “maliciously freezing funds.” The exchange alleged that these actions increased daily operating costs and operational hindrances.
To tackle these operational challenges, JPEX announced the delisting of all transactions on its Earn Trading interface effective from Monday. Additionally, the exchange revealed its contemplation over a significant restructuring into a Decentralized Autonomous Organization (DAO).
While JPEX remains determined to persevere, it criticized the SFC vehemently. In a statement, the exchange said, “JPEX expresses extreme disappointment at the SFC’s practices which disrupt market order. Their biased stance contradicts Hong Kong’s aim to become a Web 3.0 city and fails to protect numerous investors in the territory.”
Since July 2022, JPEX has been under the SFC’s radar, being featured on its investor alert list. External reports also suggest that JPEX’s Taipei office is now deserted and Taiwanese influencers associated with the exchange are under questioning.
Although JPEX claims affiliations with securities regulators in Australia and the U.S. Financial Crimes Enforcement Network (FinCEN), recent attendees at the Token2049 conference in Singapore found JPEX’s booth deserted post the inaugural day.
Meanwhile, JPEX’s exchange token, JPC, experienced a 21% slump in its value within the last 24 hours.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.