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HomeBlockChainHong Kong to tighten crypto regulation in wake of JPEX fraud case

Hong Kong to tighten crypto regulation in wake of JPEX fraud case

Hong Kong regulators wish to tighten the noose across the crypto market after the arrest of six people following allegations of fraud round an unlicensed crypto trade referred to as JPEX.

John Lee Ka-chiu, the chief government of Hong Kong, instructed reporters on Sept. 19 that the federal government would enhance its efforts to tell traders and remind them to solely utilise platforms which have been granted SFC licences, reported AP Information.

The JPEX difficulty got here to the fore final week when the nation’s Securities and Futures Fee (SFC) notified the general public that that they had acquired over 1000 complaints associated to the unregistered crypto trade platforms with prospects complaining about collectively shedding over $128 million (1 billion Hong Kong gained) because of the fraudulent trade.

The SFC in its warning famous that JPEX was actively selling the platform’s companies and merchandise to the Hong Kong public via on-line celebrities and over-the-counter cash changers.

As the issues with JPEX grew to become public with the warning from the SFC, many customers of the platform discovered themselves unable to withdraw their funds whereas others complained about lowered pockets balances. After the Hong Kong watchdog’s warning to the trade, the platform reportedly elevated its withdrawal charge to $1,0000 to discourage customers from withdrawing their property.

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The crypto trade later blamed third-party market makers for the continued liquidity disaster on the platform that resulted within the hike of the withdrawal charge. The Hong Kong police additionally arrested influencer Joseph Lam (Lin Zuo) for his affiliation with crypto trade JPEX.

Hong Kong established itself as a rising crypto hub in 2023 engaged on varied pro-crypto laws and opening the crypto buying and selling marketplace for retail prospects. Nevertheless, unlicensed crypto platforms like JPEX have managed to idiot many customers within the nation because of a lack of expertise and consciousness. The regulatory physique is now working to teach folks on utilizing solely licensed platforms for his or her crypto buying and selling actions.

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