The Hong Kong crypto exchange JPEX exposes the trade due to an SFC examination

• The examination by JPEX has led to the arrest of a person.
• The JPEX exchange is said to have been operated in the country without a license.
• The native token of JPEX, JPC, has recorded a loss of 21.98 %in the last 24 hours after the events

Hong Kong's cryptocurrency exchange JPEX has set up its trading company in response to an investigation by the Hong Kong Securities and Futures Commission (SFC). This investigation led to the arrest of a person associated with the stock exchange, as local media reported.

The SFC claimed that JPEX, based in Hong Kong, did its business without the required license, which led to numerous complaints from users in the law enforcement authorities. The JPEX comes as a Hong Kong warns Crypto companies , on the other hand, to call themselves "banks".

JPEX leads an unfair treatment by the authorities of Hong Kong

In a blog post, JPEX expressed his dissatisfaction with the treatment that had received from relevant institutions in Hong Kong and attributed the freezing of funds to these perceived injustices through their external market makers. These market makers demanded additional information from the stock exchange for negotiation purposes, which limited the liquidity and the daily operating costs were significantly increased, which led to operational challenges.

In view of these liquidity problems, JPEX announced his decision to stop all transactions on his Earn trading interface with effect from Monday. At the same time, the stock exchange undertook to manage ongoing orders and make adjustments to the withdrawal fees. In addition, JPEX stated that it is considering a restructuring for conversion into a decentralized autonomous organization (DAO).

The JPEX Taiwanese offices were cleared

Media reports from Taiwan, the JPEX Taipei office was recently cleared, and reports that local authorities have interrogated Taiwanese influencers that had engaged the stock exchange.

On the JPEX official website, it is claimed that the stock exchange has licenses of security authorities in Australia and is registered with the US Financial Crimes Enforcement Network (Fincen) as Money Services Business (MSB).

Participants of the recent Token2049 conference in Singapore found that JPEX's booth seemed to have been left after the first day of the event.