Crypto Exchange Updates Marketing and Fees After Hong Kong Regulator Warning

Hong Kong’s high monetary watchdog, the Securities and Futures Fee (SFC) has issued a warning towards crypto trade JPEX.

Based on a report in South China Morning Publish, the SFC claims the platform showcases “suspicious options” and doesn’t have the mandatory licensing to legally function in Hong Kong.

The territory lately handed a landmark listing of crypto rules, bidding to develop into a crypto hub within the area. It calls for, amongst different authorized necessities, a digital asset buying and selling platform (VATP) license. However in response to the SFC, JPEX hasn’t utilized for one.

Earlier immediately, JPEX printed a press release, asserting the corporate must make changes to their enterprise practices and insurance policies. Together with modifying the withdrawal price for USDT, the crypto trade additionally mentioned it’s establishing a particular job power to debate future growth instructions and additional changes.

The corporate additionally issued a press release yesterday in reply to the SFC’s warning, indicating their intention and plans to use for the crypto buying and selling license. JPEX was unable, nonetheless, to supply particulars as to the standing of their utility course of.

Yesterday’s discover from the regulator learn: “No entity within the JPEX group is licensed by the SFC or has utilized to the SFC for a license to function a VATP in Hong Kong.”

The SFC additionally singled out on-line influencers and over-the-counter digital asset cash changers (OTC outlets) as having falsely promoted that JPEX had utilized for a VATP license.

“Buyers needs to be cautious of their opinions,” learn the assertion, claiming some web celebrities are paid for publicity and aren’t funding professionals.

Warning buyers of “funding alternatives which will appear too good to be true,” Hong Kong’s monetary watchdog additionally pointed to a few of the platform’s yield merchandise which embody returns on Bitcoin, Ethereum and USDT as excessive as 21%.

Hong Kong has been busy making a regulatory safezone for the crypto business—for each firms and buyers. It authorized digital asset buying and selling for retail buyers in June, and has arrange a devoted Web3 job power to advertise the ecosystem’s growth.