Trading on the cryptocurrency exchange JPEX has been suspended while Hong Kong authorities conduct an investigation.
According to a statement released on Sunday, users won't be able to place new orders on its Earn Trading interface after Monday due to several wealth management products. According to the announcement, JPEX is engaging with external market makers to address a liquidity issue.
Following a referral from the Securities and Futures Commission, the market regulator, Hong Kong police are looking into JPEX. Since the government increased attempts to expand Hong Kong's footprint as a crypto center by drawing more private investors, the SFC has warned that the firm was operating in the city as an unregistered entity. This is the first such warning from the watchdog since that time.
According to JPEX, market makers had their assets frozen after Hong Kong authorities looked into it. Until the product's expiration date, existing orders on Earn Trading will remain active, the business added.
According to local media sources and video on HK01, Hong Kong police detained influencer Joseph Lam Chok in connection with the JPEX probe, and officers could be seen loading boxes onto a different van. The fraudulent behavior associated with the exchange is directly related to this arrest. JPEX's future is still in doubt as investigations loom, which is a grave call for strict surveillance of crypto businesses.
83 complaints involving HK$34 million (US$4.3 million) and JPEX have been made to Hong Kong police, according to a report in the media on Saturday citing Police Commissioner Raymond Siu.
The SFC's warning, nevertheless, comes as Hong Kong works to establish itself as a major Bitcoin hub. Notably, this is one of the few times when such programmes have been implemented to draw lone investors to the area.
JPEX's suspicious behaviors have caused several people to question the platform's misdeeds. It is clear that the platform's unpredictability has increased as a result of the 999 USDT increase in withdrawal fees and the apparent absence of employees at its Singapore 2049 booth.
The increasing regulatory scrutiny of the cryptocurrency industry is highlighted by this incident. Some of JPEX's goods appear suspicious and may entail transactions that do not adhere to the SFC's regulatory framework, which could be the cause of the abrupt termination.