The regulator warned that JPEX management could face criminal charges for openly promoting the exchange without permission to operate in Hong Kong. No organization from the JPEX group of companies has an SFC license to operate a platform for trading digital assets, and has not even applied for this document, the agency claims. The regulator is also confused by the fact that JPEX actively advertises its services through various channels, including social media influencers, opinion leaders and over-the-counter virtual asset exchanges.
The SFC expressed concern about JPEX’s claims of returns of up to 20%, calling it a high-risk investment. Many of JPEX’s products and services seemed suspicious to the agency and did not comply with regulatory rules. The department’s statements came after reports that some investors are facing difficulties in withdrawing their assets from the site.
The SFC communicated its concerns to local influencers, demanding that they stop promoting JPEX and its services. The regulator recommended that investors refrain from investing in projects that promise too high profits, and also warned against trading digital assets on unregulated platforms.
In August, the SFC warned that operating platforms trading digital assets without a license would be a criminal offence. Recently, local police detained 458 people for money laundering of $60 million. Of this amount, about $15 million was laundered through cryptocurrencies.
Source: Bits
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