By Pradeep Saran, September 18, 2023
The Hong Kong-based cryptocurrency exchange JPEX has suspended its trading activities following an investigation by the Hong Kong Securities and Futures Commission (SFC). The probe resulted in the arrest of an individual associated with the exchange, as reported by local media.
According to the SFC, JPEX has been operating within Hong Kong without the necessary license, and the police have received numerous complaints regarding the platform’s activities.
In response to these developments, JPEX issued a statement on its blog, claiming that it has faced unfair treatment from relevant institutions in Hong Kong. The exchange alleged that its partnered third-party market makers had frozen funds in a malicious manner, demanding additional information for negotiation. This action, JPEX argued, had restricted their liquidity and substantially increased their daily operating costs, leading to significant operational challenges.
Amid these liquidity challenges, JPEX announced its decision to delist all transactions on its Earn Trading interface starting from the following Monday. The exchange also assured users that ongoing orders would be addressed and mentioned plans to adjust withdrawal fees. Furthermore, JPEX stated that it is considering restructuring itself as a Decentralized Autonomous Organization (DAO).
Reports from local media in Taiwan indicated that JPEX’s Taipei office had recently been vacated, and authorities were said to have questioned Taiwanese influencers who had been hired by the exchange.
On its official website, JPEX had previously claimed to be licensed by securities authorities in Australia and registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).
During the Token2049 conference in Singapore, attendees who visited JPEX’s booth reportedly found it abandoned after the first day of the event.