SFC warns public versus virtual asset trading platform JPEX

No entity in the JPEX Group is licenced by the SFC.

The Securities and Futures Commission (SFC) clarified that no entity in the JPEX group is licenced by the SFC or has applied to the SFC for a licence to operate in Hong Kong. 

It has immediately requested key opinion leaders and over-the-counter virtual asset money changers to halt promotions of JPEX and its related services and products.

This stemmed from observations that SFC found on JPEX, a virtual asset trading platform:

(a)        JPEX states on its website that it is “a licensed and recognised platform to facilitate the trading of digital asset and virtual currency”. It claims on its website and local advertorials to have obtained licences from certain overseas regulators to operate VATP, which is in fact not true.

(b)        JPEX offers very high returns for some of its products.

(c)        The SFC has received complaints from, and notes that there have been media reports of, retail investors who were unable to withdraw virtual assets from their accounts maintained with JPEX, or had found their account balances having been reduced and altered.

(d)        Some of the products offered by JPEX appear to be arrangements involving virtual assets such as virtual asset “deposits”, “savings” or “earnings” which are not allowed under the SFC’s regulatory regime for VATPs.

(e)        JPEX publicised on its website and local advertorials that it had entered into a business cooperation with and received investment from a Hong Kong listed company, when, in fact, the cooperation has already been terminated and no investments were actually made by the listed company.

(f)          KOLs and OTC Shops have made false or misleading statements on social media to suggest that JPEX has applied for a VATP licence in Hong Kong, either independently or in partnership with a Hong Kong listed company, when in fact no entity in the JPEX group has submitted any VATP licence application to the SFC.