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The Hong Kong Security and Futures Commission (SFC) warned an unlisted crypto exchange platform, JPEX, that it will face criminal charges against actively promoting its platforms through influencers and virtual assets money changers.
JPEX, cryptocurrency exchange was warned by the Hong Kong Securities and Futures Commission (SFC), on September 13th, of having “suspicious features” and spreading false information about its licensing. The company misled users by promoting fake news, that JPEX was registered on their virtual asset trading platform (VATP) through influencers and over-the-counter virtual assets money changers.
The Hong Kong regulatory authorities disclosed rigid obligations list to becoming a crypto hub in the region. All crypto exchanges were required to register on a VATP, among other requirements, but Hong Kong’s financial watchdog, the SFC, said JPEX did not apply for one. The SFC additionally brought up concerns about JPEX’s savings product, classifying it as a high-risk investment that provides a 21% yearly rate of return for ETH, 20% for BTC, and 19% for USDT.
JPEX claims on its website that it is “a licensed and recognized digital asset and virtual currency platform”. It is also falsely claimed that they registered in the VATP as an international virtual asset trading platform. According to the SFC, they also received complaints from retail investors that they were not able to withdraw the original amount from the platform or their account balances were declined and changed.
On accusations, fraudulent misrepresentations are punishable by fines of up to $1,000,000 and seven years in prison, or by level 6 fines and six months in jail on summary conviction.
SFC urged all the digital assets to money changers shops and influencers to cease the promotion of the JPEX and other services associated with their platform. Furthermore, SFC also advised the investors to calculate the risk related to the unregistered platforms before investing. If such platforms encounter issues, investors can face challenges in money withdrawal.