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

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The JPEX fraud saga began final week when the SFC revealed it had bought 1,400 complaints in opposition to the replace regarding fraud, withdrawal freezes and declining wallet balances.

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Hong Kong regulators are having a search for to tighten the noose across the crypto market after the arrest of six folk following allegations of fraud round an unlicensed crypto replace referred to as JPEX.

Hong Kong Chief Govt John Lee Ka-Chiu suggested newshounds on Sept. 19 that the govt. would amplify its efforts to indicate traders and remind them most efficient to shriek platforms granted Securities and Futures Price licenses, reported the Linked Press.

The JPEX disaster got right here to the fore on Sept. 13 when the SFC notified the overall public that it had bought over 1,000 complaints about the unregistered crypto replace platform, with claims of losses amounting to over 1 billion Hong Kong dollars ($128 million).

In its warning, the SFC eminent that JPEX promoted the platform’s services and products to the Hong Kong public through online celebrities and over-the-counter money changers.

Because the complications with JPEX become public, many customers of the platform discovered themselves unable to withdraw their funds, whereas others complained about lowered wallet balances. After the Hong Kong watchdog warned the replace, the platform reportedly elevated its withdrawal rate to $1,000 to discourage customers from withdrawing their property.

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The crypto replace later blamed third-birthday party market makers for the ongoing liquidity disaster on the platform that resulted within the hike of the withdrawal rate. Hong Kong police also arrested influencer Joseph Lam (Lin Zuo) for his association with JPEX.

Hong Kong established itself as a growing crypto hub in 2023, with excellent-crypto legislation and opening the crypto procuring and selling marketplace for retail prospects. Alternatively, unlicensed crypto platforms like JPEX have fooled many customers within the country because of the a lack of know-how and awareness. The regulatory body is now working to educate other folk on the usage of most efficient licensed platforms for his or her crypto procuring and selling activities.

Glean this article as an NFT to wait on this second in ancient previous and masks your wait on for self sustaining journalism within the crypto pickle.

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