Hong Kong’s cryptocurrency platform, JPEX, has suspended certain trading activities amid an active police investigation. This decision comes on the heels of concerns raised by the city’s market regulator regarding the platform’s licensing status.
Trading Restrictions and Liquidity Challenges
From Monday, JPEX users will find themselves unable to place new orders on the Earn Trading interface, a decision affecting various wealth management products. This development was clarified in a recent statement by the platform. Furthermore, JPEX is currently in talks with external market makers to address existing liquidity issues.
Regulatory Scrutiny Intensifies
The Securities and Futures Commission (SFC) has flagged JPEX, prompting a thorough investigation by the Hong Kong police. The SFC alleges that JPEX has been functioning in the city without the necessary license. This marks a significant step by the regulatory body, especially considering the nation’s recent push to enhance Hong Kong’s stature as a leading cryptocurrency hub by attracting more individual investors.
Frozen Funds and Current Orders
Following inquiries by local authorities, JPEX revealed that market makers had put a hold on funds. However, the platform assures that pre-existing orders on Earn Trading will proceed as planned until they reach maturity. Efforts to obtain comments from JPEX on the matter have been unfruitful.
Joseph Lam Chok, a well-known influencer, has been taken into custody in relation to the ongoing JPEX investigation. Reports and footage from HK01 have shown police personnel loading boxes onto a vehicle. Attempts to get a comment from the Hong Kong police have so far remained unanswered.
Hong Kong police have documented 83 grievances against JPEX, which collectively involve an estimated HK$34 million (roughly $4.3 million). This data came to light via a statement from police commissioner Raymond Siu.
