Recently, Hong Kong’s JPEX exchange faced a big challenge. The city’s regulator said JPEX was working without the right permissions. This news led to a lot of problems for JPEX.
Trading Stops at JPEX
After the warning, JPEX stopped some of its trading on 18 September. Users couldn’t start new trades, but they could finish old ones. Also, it cost more to take money out of the platform. JPEX said this was because some other market players were causing problems for them. They were talking to these players to fix this issue.
More Issues Arise
JPEX then shared a new plan. They wanted to change into a DAO. This means users could vote on big decisions. But soon after, people found out that JPEX’s Taipei office was empty. At the same time, Hong Kong’s money authority told people to be careful with some crypto companies. On 18 September, the police arrested a person linked to JPEX. They also arrested five more people. Many had complained about JPEX, saying it took about $128 million wrongly.
In another unexpected move, JPEX left its booth on the second day of the Token2049 conference. This caused more uncertainty about its future plans.
JPEX had been in Hong Kong for two years. But the city’s main financial watchdog warned about it. They said JPEX didn’t have the right license to work. JPEX replied fast. They asked if the watchdog really supported crypto in Hong Kong.
What This Means
Hong Kong wants to be a big place for crypto. But this JPEX issue shows the need for clear rules. These rules should protect people but also let companies grow. The way Hong Kong deals with JPEX will show other places how to handle similar problems.