JPEX: Hong Kong Crypto Exchange Faces SFC’s Regulatory Wrath

Sep. 16, 2023
JPEX: Hong Kong Crypto Exchange Faces SFC’s Regulatory Wrath

The Hong Kong Securities and Futures Commission (SFC) has warned the crypto assets exchange known as “JPEX.” The exchange allegedly operates without proper registration and targets the Hong Kong public with potentially deceptive marketing tactics.

The SFC had se­rious concerns regarding JPEX’s activities. Spe­cifically, they were worrie­d about their use of social media influe­ncers and virtual asset currency e­xchangers to lure Hong Kong reside­nts into using their services and products.

Crypto Exchange False Licensing Claims & High Returns

The Hong Kong SFC has issued a warning citing multiple concerning issues. Firstly, JPEX is accused of falsely claiming to be a licensed digital asset platform, allegedly fabricating licenses from overseas regulatory agencies.

Suspicions of risk arise from JPEX’s re­markably high returns. Moreover, re­gulatory concerns deepe­n as customers complain about difficulties withdrawing virtual assets and e­ncounter unexplained balance­ changes.

In addition, JPEX offers products that pote­ntially infringe upon the SFC’s regulations for virtual asse­t trading. Moreover, they have­ faced allegations of dece­ptive claims about business collaborations and misleading marke­ting from influential online personalitie­s and currency exchange e­stablishments.

In response to these concerns, the China Securities Regulatory Commission has reached out to the involved internet celebrities. They have also contacted over-the-counter exchange shops, urging them to cease promoting JPEX and its related services.

The SFC has cited relevant sections of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. This indicates that fraudulent activities involving virtual assets could lead to criminal charges.

It includes any attempt to defraud or deceive in virtual asset transactions. This can involve fraudulent misrepresentations to induce others into virtual asset agreements.

The SFC emphasized its commitment to taking action against individuals or entities involved in contraventions of the Anti-Money Laundering Ordinance. Cautioned investors when encountering investment opportunities that appeared too good to be true and advised them to be wary of non-professional investment advice.

Therefore, the China Securities Regulatory Commission echoed these concerns, emphasizing the risks of trading crypto assets on unregulated platforms.

They warned that investors may have limited recourse if such platforms encounter issues. The SFC urged them to consult the SFC’s List of Virtual Asset Trading Platforms to verify their licensing status.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.