Crypto exchange JPEX is misleading investors, Hong Kong securities regulator says, warning online promoters
- The Securities and Futures Commission warned of ‘suspicious features’ on JPEX, which it said is misleading investors about being licensed in Hong Kong
- The regulatory body is trying to tighten the reins on crypto platforms after warning in August about exchanges making false claims
The Hong Kong Securities and Futures Commission (SFC) issued a warning on Wednesday against the use of the cryptocurrency exchange JPEX, accusing it of “suspicious features” and promoting misleading information about its licensing.
Online influencers and over-the-counter virtual asset money changers (OTC shops) were making false or misleading statements about JPEX having applied for a virtual asset trading platform (VATP) licence in Hong Kong, the city’s chief financial regulator said in a statement posted to its website.
“No entity in the JPEX group is licensed by the SFC or has applied to the SFC for a license to operate a VATP in Hong Kong,” it said.
The SFC warned investors to “be cautious about investment opportunities that seem too good to be true”, adding that investment advice posted on social media platforms is often done by paid promoters, not investment professionals.
The agency notified relevant influencers, opinion leaders and OTC shops and requested they “cease promoting JPEX and its related services and products”, it said.