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Hong Kong Authorities Initiate Investigation into Prominent Crypto Exchange JPEX

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Cryptocurrency Exchange JPEX Under Investigation in Hong Kong

Alleged Suspicious Activities and Unlicensed Product Marketing

The Securities and Futures Commission (SFC) in Hong Kong is currently investigating cryptocurrency exchange JPEX for engaging in alleged suspicious activities and marketing products without a proper license.

Promotional Efforts Targeting Hong Kong Public

The SFC has become aware of promotional efforts by JPEX specifically targeting the Hong Kong public. According to a statement released by the SFC, JPEX does not possess a virtual asset license in the city and has not applied for one.

Observation of Suspicious Features

The SFC has observed several suspicious features at JPEX, including:

  • False claims of obtaining crypto licenses abroad
  • Promotion of high returns on its products
  • Prohibited offerings such as crypto deposit and staking services

Additionally, the SFC has received complaints from investors who were unable to withdraw their virtual assets from JPEX.

Enforcement Action by the SFC

The SFC has made it clear that it will not hesitate to take enforcement action against individuals and entities who violate the virtual asset trading platform regime administered by the SFC. This includes those involved in the aforementioned violations.

Response from JPEX

JPEX has responded to the allegations made by the SFC, calling them “unfair suppression” and accusing the regulator of exerting undue pressure. In a statement, JPEX mentioned that it will gradually adjust the withdrawal fees in the coming days and implement higher withdrawal limits.

Police Investigation

The SFC has referred the case to the Hong Kong police, who will now investigate if any criminal acts were involved in JPEX’s activities.

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