Hong Kong's SFC Cracks Down on Unregistered Crypto Exchange JPEX – Coinpedia Fintech News
Hong Kong SFC has warned JPEX that it could face criminal charges for promoting its services to the public.
The SFC is concerned about JPEX’s high-yield service, which promises returns of up to 20%.
Investors should only invest in cryptocurrency or virtual assets through regulated platforms to protect themselves from scams.
The Securities and Futures Commission (SFC) of Hong Kong has warned the unregistered cryptocurrency exchange JPEX that it could face criminal charges for promoting its services to the public. The SFC is also concerned about JPEX’s high-yield service, which promises returns of up to 20% and is considered to be a highly risky investment.
No SFC License for JPEX – Why?
The SFC has observed that JPEX has been actively promoting its services through social media influencers, key opinion leaders (KOLs), and over-the-counter virtual asset money changers. However, none of the entities within the JPEX group hold a license from the SFC to operate a virtual asset trading platform in Hong Kong, nor have they applied for one.
Concerns Raised by the SFC
The SFC has highlighted several concerns about JPEX, including:
- Deceptive claims about licenses
- Offering exceptionally high returns
- Reports of investors facing difficulties in withdrawing their assets
- Some of JPEX’s products appear to be suspicious and may involve dealings that do not comply with the SFC’s regulatory framework
The SFC has also informed relevant KOLs and over-the-counter shops about its concerns and has requested them to cease promoting JPEX and its services.
Related: Hong Kong Lawmaker Calls for Crackdown on Cryptocurrency Crimes!
Investors, You Must Stay Vigilant!
It is quite evident that the SEC can take control over such entities which engage in fraudulent or deceptive practices involving virtual assets against the law, and they are fully prepared to take enforcement actions against individuals and entities not adhering to their regulations.
In the whole process, investors need to stay alert when they get such scam offers that are too lucrative, especially those promoted on social media platforms by KOLs who may not have professional investment expertise. The SFC also warns against trading virtual assets on unregulated platforms, as investors may face significant risks.
To protect yourself from scams, investors should:
- Do your research before investing in any cryptocurrency or virtual asset.
- Only invest through regulated platforms.
- Be wary of promises of high returns.
- Never give out your personal information or passwords to anyone.
It is of utmost importance to verify the licensing status of any virtual asset trading platform by referring to the SFC’s list of licensed platforms. Detailed information about JPEX, which has been on the SFC’s Alert List since July 8, 2022, is also provided for reference. Also, check on the SFC-listed exchanges to trade.
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