Crypto exchange JPEX responded to Hong Kong’s Securities and Futures Commission (SFC) warning for operating without obtaining a requisite license. The Wednesday, September 13 statement indicated that JPEX never submitted a bid for the license.
The financial watchdog in Hong Kong decried the continued running of the crypto exchange JPEX. SFC issued a warning captured in the South China Morning Post publication on Thursday, September 14 that JPEX harbored suspicious features. Also, it lacked the requisite licensing to operate in the administrative region legally.
The warning from the top watchdog coincides with the passing of the landmark regulations as the territory edges closer to becoming a regional crypto hub. The regulations require crypto exchange platforms to obtain virtual asset trading platform (VATP) licensing. SFC observed that JPEX has yet to apply for the VATP license.
The revelation of the warning from SFC coincides with the statement by JPEX on Thursday announcing adjustments to the platform’s business practices. Besides the policy adjustments, JPEX confirmed modifying fees charged during the USDT withdrawal. The statement illustrated that JPEX would establish a special task force tasked with examining the future development and adjustments it would undertake.
SFC Labels JPEX as Non-Compliant Trading Platform
Hong Kong’s regulator indicated that the SFC approves no single entity within the JPEX group to operate. The SFC condemned the online influencers that falsely promoted JPEX as having applied for the VATP license. The regulator alleged that over-the-counter virtual shops providing virtual asset money changing also lied on the JPEX license.
SFC’s statement warned investors to reconsider their opinions since several internet celebrities pursued publicity payments, not investment professionals.
The financial watchdog rallied investors towards an in-depth assessment of investment opportunities to avoid becoming victims of fraudulent activities. SFC referenced the JPEX’s yield products offering generous on Ethereum, USDT, and Bitcoin, approximating 21% high.
The move by Hong Kong to unmask JPEX noncompliance aligns with its efforts to develop a regulatory safe zone for the digital assets ecosystem. Besides protecting investors, SFC restated its support for the crypto ecosystem’s development by establishing a dedicated Web3 task force and approving retail sales of digital assets to investors.
JPEX Response to SFC Warning
JPEX quickly replied to the SFC’s warning, restating its intention and plans to pursue the crypto trading license. It cited the February 23 announcement it would pursue Hong Kong’s trading license guided by the deliberations with SFC regarding retail services and investors’ protection.
JPEX admitted to failing to make meaningful progress in its bid for the trading license. Instead, JPEX indicated it was preparing legal documents. However, it confessed to being stuck in the preparation phase and has yet to submit the license application.
JPEX faults the statement issued by SFT as contradicting the deliberate decision and initiative by the Hong Kong SAR government to transform the administrative territory into a Web 3.0 hub. It warned SFC to reconsider its harsh statements that JPEX considers a hindrance to Hong Kong’s march into the regional Web 3.0 hub.
JPEX cited its commitment to the Greater China and Asia crypto market by citing the May 19, 2023 blueprint. The firm portrayed the roadmap as affirming its belief in developing the blockchain market in Hong Kong.
JPEX Faults SFC Warning as Reflecting Hindrance to Hong Kong’s Crypto Objective
JPEX indicated its active participation in the Token 2049 conference convened in Singapore to explore the industry prospects with other stakeholders. Instead, it dismissed the noncompliance label, citing its determination to create a Web 3.0 community complying with licensing and regulations.
JPEX attacked the statement by SFC as one exerting undue pressure on the trading platform. JPEX added that the warning reflects a declined commitment to implement Web 3.0 in the digital assets industry.
JPEX lamented the unfair suppression by the administrative region’s SFC as prompting it to consider ending the pursuit of license application. Besides adjusting its future policy development, JPEX indicated that SFC should bear responsibility for hindering Hong Kong’s pursuit of crypto development.
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