Hong Kong crypto alternate JPEX suspends buying and selling amid SFC probe

• The probe into JPEX has resulted within the arrest of 1 individual.
• The JPEX alternate has allegedly been working within the nation with out a license.
• JPEX’s native token, JPC, has skilled a 21.98% decline in worth over the previous 24 hours following because the occasions unfold.

Hong Kong’s cryptocurrency alternate, JPEX, has halted its buying and selling operations in response to an investigation performed by the Hong Kong Securities and Futures Fee (SFC). This inquiry resulted within the arrest of a person affiliated with the alternate, as reported by native media.

The SFC has asserted that JPEX, based mostly in Hong Kong, had been conducting its operations with out the mandatory license, which prompted quite a few complaints from customers to legislation enforcement businesses. The JPEX comes as Hong Kong warns crypto companies towards referring to themselves as “banks.”

JPEX cites unfair therapy by Hong Kong authorities

In a weblog submit, JPEX expressed dissatisfaction with the therapy it acquired from related Hong Kong establishments and attributed the freezing of funds by their third-party market makers to those perceived injustices. These market makers demanded further info from the alternate for negotiation functions, thereby proscribing liquidity and considerably rising every day operational prices, resulting in operational challenges.

In gentle of those liquidity points, JPEX introduced its determination to cease all transactions on its Earn Buying and selling interface, efficient Monday. Concurrently, the alternate pledged to handle ongoing orders and make changes to withdrawal charges. Moreover, JPEX acknowledged that it’s considering a restructuring effort to rework right into a Decentralized Autonomous Group (DAO).

JPEX’s Taiwan places of work vacated

Media experiences from Taiwan have indicated that JPEX’s Taipei workplace was just lately vacated, and native authorities have reportedly interrogated Taiwanese influencers whom the alternate had engaged.

JPEX’s official web site claims that the alternate holds licenses from securities authorities in Australia and is registered with the US Monetary Crimes Enforcement Community (FinCEN) as a Cash Companies Enterprise (MSB).

Attendees on the latest Token2049 convention in Singapore famous that JPEX’s sales space appeared deserted after the primary day of the occasion.