JPEX, a cryptocurrency exchange based in Hong Kong, has halted its trading operations in response to an investigation conducted by the Hong Kong Securities and Futures Commission (SFC). One person has been arrested as a result of this probe.
The SFC asserts that JPEX had been operating without the necessary license, which prompted numerous complaints from users to law enforcement agencies. In addition, Hong Kong warned crypto firms against referring to themselves as “banks.”
In a blog post, JPEX expressed dissatisfaction with the treatment it received from relevant Hong Kong institutions, claiming the freezing of funds by their third-party market makers was due to unjust circumstances. These market makers had demanded additional information from the exchange for negotiation purposes, thus restricting liquidity and significantly increasing daily operational costs.
As a result of this liquidity issue, JPEX announced that it would be halting all transactions on its Earn Trading interface, effective Monday. Additionally, the exchange pledged to manage ongoing orders and make adjustments to withdrawal fees. Furthermore, JPEX is contemplating a restructuring effort to become a Decentralized Autonomous Organization (DAO).
Media reports from Taiwan have indicated that JPEX’s Taipei office was vacated and local authorities have interrogated Taiwanese influencers engaged by the exchange.
JPEX’s native token, JPC, has experienced a 21.98% decline in value over the past 24 hours as the events unfold. Furthermore, attendees at the recent Token2049 conference in Singapore noted that JPEX’s booth appeared abandoned after the first day of the event.
JPEX’s official website claims that the exchange holds licenses from securities authorities in Australia and is registered with the US Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).