An investigation by the Hong Kong Securities and Futures Commission (SFC), which led to the arrest of one person associated with the exchange, has caused the cryptocurrency exchange JPEX in Hong Kong to halt trading, according to a story in the local press.
The SFC claims that JPEX, based in Hong Kong, has been operating illegally in the region while receiving repeated complaints from law enforcement.
In a blog post, the exchange claimed that its linked third-party market makers had recently deliberately frozen assets because of JPEX, a cryptocurrency trading platform’s unfair treatment by key institutions in Hong Kong, as well as a string of unfavorable news. They increased their demands for information from the negotiation platform, limiting its liquidity and sharply raising daily running costs, which created operational challenges.
JPEX announced that, in response to these liquidity issues, it will delist all transactions on its Earn Trading interface as of Monday, while also ensuring ongoing orders and lowering withdrawal fees. Additionally, the exchange stated that it was thinking about reforming as a Decentralized Autonomous Organization (DAO).
Taiwanese local media claim that the JPEX office in Taipei was recently closed, and that Taiwanese influencers employed by the exchange have apparently been questioned by law enforcement.
According to JPEX’s website, it holds an Australian securities licence and is registered as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) in the United States.
During the recent Token2049 conference in Singapore, attendees who stopped by JPEX’s exhibit reported that it had been abandoned after the first day.
