Hong Kong to tighten crypto regulation in wake of JPEX fraud case
The SFC noted that JPEX promoted the platform’s services and products to the Hong Kong public through online celebrities and over-the-counter money changers....
- Hong Kong regulators are tightening regulations in the crypto market after the arrest of six individuals linked to an unlicensed crypto exchange called JPEX.
- The government plans to inform and remind investors to use platforms with Securities and Futures Commission licenses.
- JPEX received over 1,000 complaints and claims of losses amounting to over $128 million.
- The exchange promoted its services through online celebrities and money changers.
- Users faced difficulties in withdrawing funds and experienced reduced wallet balances.
- JPEX increased its withdrawal fee to discourage users from withdrawing assets.
- The exchange blamed third-party market makers for the liquidity crisis.
- Influencer Joseph Lam was arrested for his association with JPEX.
- Hong Kong aims to educate people on using licensed platforms for crypto trading.
The article highlights the efforts of Hong Kong regulators to address fraud in the crypto market and protect investors. It also emphasizes the need for education and awareness regarding licensed platforms.