Following an investigation by the Hong Kong Securities and Futures Commission (SFC), Hong Kong-based cryptocurrency exchange JPEX has suspended trading.
Hong Kong Crypto Exchange JPEX Suspends Trading
This move comes after the arrest of a person associated with the exchange. According to South China Morning Post (SCMP), Hong Kong police received a total of 83 complaints regarding JPEX, which was allegedly operating without the necessary licence.
The SFC stated that JPEX was operating in Hong Kong without the necessary licence, raising concerns about the legitimacy and regulatory compliance of the exchange.
These allegations led to a comprehensive investigation by the SFC.
In response to the resulting situation, JPEX released a statement explaining the challenges they are currently facing.
The exchange highlighted problems with third-party market makers who, in their view, unfairly froze funds and required additional information for negotiation.
This resulted in liquidity constraints and a significant increase in daily operational costs, leading to significant difficulties in running the business.
Given these liquidity restrictions, JPEX has decided to delist all transactions on the Earn Trading interface starting next Monday.
Additionally, the exchange is actively working to adjust withdrawal fees and is considering a restructuring move to become a Decentralized Autonomous Organization (DAO).
Reports from Taiwan indicate that JPEX's Taipei office was recently evacuated and that local officials are meeting with Taiwanese influencers associated with the exchange.
*This is not investment advice.
