In the wake of escalating operational challenges, the Dubai-centric crypto exchange, JPEX, faces scrutiny and criticism. The root causes appear to stem from regulations, damaging news, and questionable dealings by third-party market makers.
The Cause: Regulatory and Market Tensions
Recently, JPEX voiced dissatisfaction over what they deem “unjust actions” by specific Hong Kong institutions. They assert that these actions, combined with adverse media reports, led their third-party market makers to block funds intentionally. This impasse has driven the exchange to demand more platform details for negotiations. The subsequent constraints on their liquidity amplified their daily operational expenses, hindering their regular functioning.
Owing to this liquidity issue, JPEX declared that operations linked to its Earn product would cease by September 18. Consequently, no fresh Earn orders can be initiated, with existing ones only lasting until the product’s expiry.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! While standard spot trading seems unaffected, murmurs among JPEX users suggest a staggering 999 Tether fee for withdrawals. This fee applies to sums up to 1,000 USDT. Although JPEX has yet to comment on this escalated fee, they’ve committed to gradually normalizing these charges post their dialogue with the concerned third-party market makers.
Promise of Resolution: The JPEX StatementÂ
In a bid to appease stakeholders, JPEX has vowed swift action. They pledge to restore liquidity promptly and recalibrate withdrawal charges to customary rates. Further specifics will emerge once negotiations wrap up.
In a progressive move, JPEX plans to leverage a decentralized autonomous organization (DAO) to garner user insights on its impending restructuring.
A notable setback for JPEX was the Hong Kong Securities and Futures Commission (FSC) admonishing them on September 13. The FSC alleges that JPEX marketed its offerings to Hongkongers without an appropriate license. The SFC highlighted multiple “red flags” about JPEX’s operations, including lofty promises of returns and discrepancies in its outreach to the local populace without official licensure.
Event Implications: The Token 2049 IncidentÂ
Corroborating the strained relations, an attendee of the Token 2049 conference in Singapore reported that JPEX’s booth was conspicuously vacant a day after the FSC’s warning.
Furthermore, recent South China Morning Post reports on September 18 indicate that at least 83 grievances linked to the exchange have been lodged with Hong Kong’s police.
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