Unlicensed JPEX Faces Regulatory Heat

The virtual asset trading platform known as “Greenstone Digital Asset Platform” (JPEX) found itself in hot water as it was revealed that the platform had not been licensed by the China Securities Regulatory Commission (CSRC). Following this revelation, the Hong Kong Police acted swiftly, arresting four men and two women across various districts on charges of “conspiracy to defraud.” These arrests came after the police received referrals from the Securities and Futures Commission (SFC) on September 9 and subsequently conducted investigations into JPEX’s operations.

Defiant Response to Regulatory Crackdown

The individuals arrested are currently in detention, pending further investigation. As of 2 p.m. this afternoon, an astonishing 21,408 reports have been filed regarding this incident, collectively involving approximately $10 billion.

In response to the crackdown, JPEX issued a statement in the evening, expressing its willingness to cooperate with regional government policies, regulations, and licensing supervision systems. The platform claimed to have maintained communication with the SFC and criticized the CSRC for what they deemed a failure to fulfil commitments. JPEX also called upon its partners to terminate cooperation with the platform and accused the SFC of adopting an unfair approach that runs counter to the Hong Kong government’s ambition of becoming a Web 3.0 capital. Despite the ongoing legal proceedings, JPEX assured users that they would continue to operate and provide priority assistance for withdrawals.


Police Raid Coiner Store

Meanwhile, law enforcement authorities took further action by conducting a search at Coiner, located at The One in Tsim Sha Tsui, around 5 p.m. The mall swiftly cordoned off the shop, allowing the police to collect evidence. By 8 p.m., the police had seized at least two bags of cash and one bag of documents from the premises.

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The arrests and the subsequent crackdown on JPEX serve as a stark reminder of the regulatory challenges and risks associated with the rapidly evolving world of virtual asset trading. The Hong Kong authorities appear resolute in their efforts to maintain financial integrity and protect investors, emphasizing the need for stringent oversight in this burgeoning sector.