The Securities and Futures Commission (SFC) of Hong Kong has issued a warning against cryptocurrency exchange JPEX, citing "suspicious features".
JPEX Exchange Receives Warning From Hong Kong’s Securities and Futures Commission
The Securities and Futures Commission (SFC) of Hong Kong has issued a warning against cryptocurrency exchange JPEX, citing "suspicious features" as well as the lack of required licensing to operate legally in Hong Kong. This comes as Hong Kong seeks to establish itself as a regional crypto powerhouse by enacting extensive crypto legislation, including the requirement of a virtual asset trading platform (VATP) license. However, the SFC reports that JPEX has not filed for such a license.
The SFC also stated that JPEX was falsely advertised as having sought for a VATP license by online influencers and over-the-counter virtual asset money changers (OTC shops). The regulator advised investors to be careful of such statements and to exercise caution when considering investment possibilities that appear too good to be true.
In response to the SFC's warning, JPEX issued a statement stating that the company intends to modify its business practices and procedures. The conversation mentioned plans to form a special task force to discuss future development directions and other changes. JPEX also indicated its desire to seek for a crypto trading license, but provided no information on the status of the application process.
Hong Kong has been developing a legislative framework for the crypto business, including allowing retail investors to trade digital assets and establishing a Web3 task group to support ecosystem development. The SFC's warning against JPEX emphasizes the regulatory scrutiny and the necessity for compliance in Hong Kong's developing crypto sector.
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