Dubai-based cryptocurrency exchange, JPEX, is currently grappling with a regulatory probe led by Hong Kong police and financial authorities, following suspicions of fraudulent activities. The exchange, which had gained significant traction in recent years, announced on Sunday its decision to “delist” all transactions linked to its Earn Trading interface, effective September 18, 2023.
According to JPEX, starting from the aforementioned date, users will be unable to initiate new Earn orders. However, existing ongoing Earn orders will be honored until their designated end date, allowing users to receive their rewards.
In a statement, JPEX expressed its discontent with what it deems as “unfair treatment” from relevant institutions in Hong Kong. The platform alleges that the negative news surrounding the company has prompted third-party market makers to take drastic measures, effectively freezing funds. JPEX asserts that these market makers have demanded additional information from the platform for negotiations, a move that has constrained liquidity and substantially escalated daily operational expenses.
The exchange is currently in discussions with market makers in an attempt to rectify the liquidity shortage, with the primary aim of safeguarding the interests of its user base. JPEX remains optimistic that a resolution can be reached to restore normalcy to its operations.
As the investigation unfolds, the cryptocurrency community watches closely, eager to see how this situation will impact the broader landscape of digital asset trading and regulation in the region.