Hong Kong cryptocurrency exchange JPEX has suspended trading following an probe by the Hong Kong Securities and Futures Commission (SFC), which resulted in the arrest of one person attached to the exchange, according to a.
Hong Kong-based JPEX has been operating in the territory without a license, the SFC says, and
“Recently, due to the unfair treatment by relevant institutions in Hong Kong towards JPEX, a cryptocurrency trading platform, and a series of negative news, our partnered third-party market makers have maliciously frozen funds,”. “They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
Amid these liquidity challenges, JPEX said it will delist all transactions on its Earn Trading interface as of Monday, while ensuring ongoing orders and adjusting withdrawal fees. The exchange also said it is considering restructuring as a Decentralized Autonomous Organization (DAO).
Local media in Taiwan report that, and authorities have reportedly questioned Taiwanese influencers hired by the exchange.
On its website, JPEX says it is licensed by securities authorities in Australia and has registration with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).
Attendees who visited JPEX’s booth during the recent Token2049 conference in Singapore found it to be reportedly abandoned after the first day.
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JPEX's thinly-traded exchange token, JPC,during the last 24 hours.