Hong Kong crypto exchange responds to ‘suspicious features’ claim

• The SFC’s statement, issued earlier, stated that no entity within the JPEX group possessed an SFC license.
• Hong Kong has been actively aiming to provide a secure environment for both cryptocurrency companies and investors.

In response to the Securities and Futures Commission’s [SFC] warning earlier, JPEX swiftly issued a statement outlining its commitment to align with regulatory requirements. The cryptocurrency exchange also revealed its intent to modify business practices and policies.

This included adjustments to withdrawal fees for popular stablecoin Tether [USDT]. Additionally, JPEX announced the formation of a special task force dedicated to future development directions and further regulatory compliance.

For the uninitiated, Hong Kong’s leading financial watchdog, the Securities and Futures Commission (SFC), had issued a stern warning against JPEX, citing concerns over “suspicious features” and the absence of essential licensing required to operate legally in Hong Kong.

This followed Hong Kong’s introduction of a mandate for a Virtual Asset Trading Platform (VATP) license.

Concerns raised over licensing

Under Hong Kong’s new crypto regulations, cryptocurrency firms are obligated to register with the SFC and obtain a VATP license to conduct operations in the region. However, according to the SFC, JPEX has not initiated the application process for this vital license.

JPEX has expressed its intention to apply for a crypto trading license. However, the company was unable to provide concrete details regarding the status of its application process at press time.

The SFC’s statement, issued earlier, stated that no entity within the JPEX group possessed an SFC license. It also said JPEX hadn’t initiated the application process for a VATP license within Hong Kong.

Moreover, the SFC raised concerns about online influencers and over-the-counter virtual asset money changers falsely promoting that JPEX had applied for a VATP license.

JPEX and influencers

Notably, the regulator urged investors to exercise caution when considering such claims. It also stated that some internet celebrities are paid for publicity and lack professional investment credentials.

The SFC also issued a cautionary note regarding certain yield products offered by JPEX, which advertised returns as high as 21% on popular cryptocurrencies like Bitcoin [BTC], Ethereum [ETH], and USDT.

The exchange’s response

In response, JPEX questioned the SFC’s commitment to a crypto-friendly environment in Hong Kong and expressed concerns over suppressing cryptocurrency development in the region.

Hong Kong has been aiming to provide a secure environment for both cryptocurrency companies and investors. In June, the region approved digital asset trading for retail investors, opening up new avenues for crypto market participation.

Furthermore, Hong Kong established a dedicated Web3 task force to foster the development of the evolving Web3 ecosystem.