Cryptocurrency exchange JPEX is being probed by authorities in Hong Kong over alleged suspicious activities and product marketing without a license.
The Securities and Futures Commission (SFC) said that it was aware of promotional efforts targeting the Hong Kong public by crypto exchange JPEX, according to a statement, which does not hold a virtual asset license in the city nor has it applied for one.
In addition, the SFC said it had observed a number of «suspicious features» at JPEX including false claims of obtaining crypto licenses abroad, promotion of high returns on its products and prohibited offerings such as crypto deposit and staking services. The regulator also said it had received complaints about investors who were unable to withdraw virtual assets at JPEX.
«The SFC will not hesitate to take enforcement action against individuals and entities who fail to abide by the [virtual asset trading platform] regime administered by the SFC, including those who are involved in such violations,» the financial watchdog added.
Police Investigation
In response, JPEX called the SFC’s allegations «unfair suppression», accusing the regulator of «exerting undue pressure».
«Based on the response of the SFC, the platform will gradually adjust the withdrawal fees in the coming days and will phase in higher withdrawal limits,» JPEX said in a statement.
The SFC has referred the case to the Hong Kong police which is now investigating if there was any involvement of criminal acts.
