After simply
three months of easing cryptocurrency laws in Hong Kong, authorities are
already discussing tightening them once more. Within the wake of alleged fraud at JPEX,
an unlicensed cryptocurrency alternate within the Chinese language particular administrative
area, authorities are taking stringent measures to control digital property.
Six people have been arrested, and the Securities and Futures Fee
(SFC) has acquired many complaints towards the platform, resulting in requires
tighter supervision.
The SFC had
already warned the general public about JPEX’s unlicensed status earlier than the arrests
had been made. Over 1,400 complaints have been lodged towards the alternate,
implicating greater than HKD 1 billion ($127.9 million) in losses. Other than
this, some traders have reported points associated to withdrawing their digital
property or discovering their balances manipulated.
Furthermore,
Finance Magnates reported yesterday (Monday) that native police arrested the financial
influencer Joseph Lam Chok in connection together with his on-line actions selling
the platform. The arrest got here simply hours after the beleaguered alternate
confirmed the suspension of buying and selling actions following an investigation by
the SFC.
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
In accordance
to the Related Press, the regulator might go a step additional and is
presently contemplating tightening cryptocurrency laws to forestall related
conditions sooner or later. It is value noting that Hong Kong solely recently
relaxed rules concerning cryptocurrency trading, permitting retail traders to
re-enter the market.
Simply In ⚡Hong Kong’s Chief Govt Requires Tighter Crypto Laws Citing JPEX Saga 🇭🇰#HongKong#Crypto#cryptocurrencies #Cryptoinvesting #bitcoin#JPEX #WSJTakeOnTheWeek pic.twitter.com/GiKyT7ZgzZ
— LIGHT ┃ NEWS (@LIGHTCRYPT01) September 19, 2023
JPEX Purchasers Left within the
Lurch
In accordance
to some complaints, traders had been unable to withdraw their digital property from
their JPEX accounts. In sure situations, account balances had been mysteriously
altered. Hong Kong’s Chief Govt, John Lee, emphasised the necessity to educate
traders on utilizing solely SFC-licensed platforms for buying and selling.
JPEX has
quickly suspended buying and selling and is reportedly in talks with third-party
market makers to resolve liquidity points. The alternate launched an announcement
accusing unspecified establishments in Hong Kong of treating it unfairly and
alleging {that a} partnered third-party market maker had frozen its funds.
“As a result of third-party market makers proscribing our liquidity and to adjust to coverage pointers, all transactions on our Earn Buying and selling interface will probably be delisted on September 18, 2023, at 00:00 (GMT+8),” the troubled alternate commented in its weblog submit. “Throughout this era, our devoted withdrawal crew liable for dealing with emergency withdrawal requests will proceed to prioritize customers’ wants.”
The Platinum sponsor, JPEX, deserted their sales space at #Token2049 on the second day. 👀
On a facet observe, their brand seems to be fairly just like FTX. Is {that a} signal? 🤔 pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
The SFC
started accepting license purposes from cryptocurrency exchanges beginning
June 1. Till then, solely skilled traders may entry such buying and selling
platforms. Nevertheless, solely two exchanges have acquired approval so far: OSL
Change and Hashkey Exchange.
The newest
points surrounding JPEX, which can have solvency issues, may decelerate Hong
Kong’s ambitions to grow to be a brand new cryptocurrency hub. A number of well-known
corporations, together with Binance, have lately taken an opportunity on the area.
SFC Warned towards
Improper Practices earlier than
Because it turns
out, the SFC in Hong Kong noticed an increase
in improper actions by some unlicensed digital asset buying and selling platforms a
month earlier than JPEX points emerged.
The
regulator highlighted four main issues:
- misinformation about acquiring
cryptocurrency licenses in Hong Kong, - non-compliance with native laws,
- corporations working with out the required authorizations,
- a particular warning to retail traders.
As Hong
Kong’s curiosity in cryptocurrencies grows, unregulated actions are additionally rising.
The cryptocurrency alternate OKX lately gained 10,000 customers for its native
cell app inside a month. Properly-known platforms like Gate.io had entered the
Hong Kong market even earlier than laws had been enacted, eager on capturing the
native buying and selling scene.
After simply
three months of easing cryptocurrency laws in Hong Kong, authorities are
already discussing tightening them once more. Within the wake of alleged fraud at JPEX,
an unlicensed cryptocurrency alternate within the Chinese language particular administrative
area, authorities are taking stringent measures to control digital property.
Six people have been arrested, and the Securities and Futures Fee
(SFC) has acquired many complaints towards the platform, resulting in requires
tighter supervision.
The SFC had
already warned the general public about JPEX’s unlicensed status earlier than the arrests
had been made. Over 1,400 complaints have been lodged towards the alternate,
implicating greater than HKD 1 billion ($127.9 million) in losses. Other than
this, some traders have reported points associated to withdrawing their digital
property or discovering their balances manipulated.
Furthermore,
Finance Magnates reported yesterday (Monday) that native police arrested the financial
influencer Joseph Lam Chok in connection together with his on-line actions selling
the platform. The arrest got here simply hours after the beleaguered alternate
confirmed the suspension of buying and selling actions following an investigation by
the SFC.
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
In accordance
to the Related Press, the regulator might go a step additional and is
presently contemplating tightening cryptocurrency laws to forestall related
conditions sooner or later. It is value noting that Hong Kong solely recently
relaxed rules concerning cryptocurrency trading, permitting retail traders to
re-enter the market.
Simply In ⚡Hong Kong’s Chief Govt Requires Tighter Crypto Laws Citing JPEX Saga 🇭🇰#HongKong#Crypto#cryptocurrencies #Cryptoinvesting #bitcoin#JPEX #WSJTakeOnTheWeek pic.twitter.com/GiKyT7ZgzZ
— LIGHT ┃ NEWS (@LIGHTCRYPT01) September 19, 2023
JPEX Purchasers Left within the
Lurch
In accordance
to some complaints, traders had been unable to withdraw their digital property from
their JPEX accounts. In sure situations, account balances had been mysteriously
altered. Hong Kong’s Chief Govt, John Lee, emphasised the necessity to educate
traders on utilizing solely SFC-licensed platforms for buying and selling.
JPEX has
quickly suspended buying and selling and is reportedly in talks with third-party
market makers to resolve liquidity points. The alternate launched an announcement
accusing unspecified establishments in Hong Kong of treating it unfairly and
alleging {that a} partnered third-party market maker had frozen its funds.
“As a result of third-party market makers proscribing our liquidity and to adjust to coverage pointers, all transactions on our Earn Buying and selling interface will probably be delisted on September 18, 2023, at 00:00 (GMT+8),” the troubled alternate commented in its weblog submit. “Throughout this era, our devoted withdrawal crew liable for dealing with emergency withdrawal requests will proceed to prioritize customers’ wants.”
The Platinum sponsor, JPEX, deserted their sales space at #Token2049 on the second day. 👀
On a facet observe, their brand seems to be fairly just like FTX. Is {that a} signal? 🤔 pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
The SFC
started accepting license purposes from cryptocurrency exchanges beginning
June 1. Till then, solely skilled traders may entry such buying and selling
platforms. Nevertheless, solely two exchanges have acquired approval so far: OSL
Change and Hashkey Exchange.
The newest
points surrounding JPEX, which can have solvency issues, may decelerate Hong
Kong’s ambitions to grow to be a brand new cryptocurrency hub. A number of well-known
corporations, together with Binance, have lately taken an opportunity on the area.
SFC Warned towards
Improper Practices earlier than
Because it turns
out, the SFC in Hong Kong noticed an increase
in improper actions by some unlicensed digital asset buying and selling platforms a
month earlier than JPEX points emerged.
The
regulator highlighted four main issues:
- misinformation about acquiring
cryptocurrency licenses in Hong Kong, - non-compliance with native laws,
- corporations working with out the required authorizations,
- a particular warning to retail traders.
As Hong
Kong’s curiosity in cryptocurrencies grows, unregulated actions are additionally rising.
The cryptocurrency alternate OKX lately gained 10,000 customers for its native
cell app inside a month. Properly-known platforms like Gate.io had entered the
Hong Kong market even earlier than laws had been enacted, eager on capturing the
native buying and selling scene.
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