In response to a warning from Hong Kong’s Securities and Futures Commission (SFC), cryptocurrency exchange JPEX has reportedly hiked its withdrawal fee to a staggering 999 Tether (USDT). Additionally, the exchange’s staff has allegedly gone missing from its booth at the Token 2049 event in Singapore.
SFC’s Warning and JPEX’s Unlicensed Operation
On September 13, the SFC, the regulatory authority overseeing crypto activities in Hong Kong, issued a warning against JPEX for actively promoting its services to the Hong Kong public without holding the necessary license or applying for one. Despite being unregulated, JPEX had presented itself on its website as a licensed and authorized platform, raising concerns about its legitimacy.
The SFC took steps to notify key opinion leaders and over-the-counter stores, urging them to cease promoting JPEX’s services due to these suspicions.
JPEX’s Drastic Fee Increase
Following the SFC’s warnings, reports have emerged indicating that JPEX has significantly raised its withdrawal fees, potentially deterring users from withdrawing their funds from the platform. The withdrawal fee now stands at a remarkable 999 USDT, suggesting the exchange’s efforts to discourage users from cashing out their holdings.
Token 2049 Event Fallout
In further fallout from the regulatory alert, attendees of the Token 2049 event in Singapore reported that JPEX’s booth was abandoned. This development raised concerns within the crypto community, as JPEX had been marketed as a sponsor of Token 2049, a prominent crypto event in the region.
Critics have voiced their displeasure over the event’s decision to allow JPEX to promote itself as a sponsor, given the regulatory concerns raised by the Hong Kong authorities. The incident underscores the importance of regulatory compliance within the cryptocurrency industry and the need for heightened diligence by event organizers and attendees alike.