JPEX Cryptocurrency Exchange Faces Liquidity Crisis and Regulatory Warnings
Summary:
Dubai-based cryptocurrency exchange JPEX is facing a liquidity crisis due to regulatory issues and actions by third-party market makers, causing the platform to increase withdrawal fees and suspend certain operations. Users have reported high withdrawal fees, and JPEX plans to gradually adjust fees back to normal levels after negotiations. The Hong Kong Securities and Futures Commission has issued a warning to JPEX, and local police have received numerous complaints against the exchange.
Dubai-based cryptocurrency exchange JPEX has criticized regulators and third-party market makers for causing a liquidity crisis that has prompted the platform to increase withdrawal fees and suspend certain operations. The exchange claimed that certain institutions in Hong Kong treated them unfairly, resulting in their third-party market makers freezing funds. As a result, JPEX has announced the delisting of all operations affiliated with its Earn product. While regular spot trading remains functional, users have reported that JPEX is charging a high withdrawal fee of 999 Tether (USDT) for withdrawals up to a maximum of 1,000 USDT. JPEX, however, expressed its commitment to recovering liquidity and gradually adjusting withdrawal fees back to normal levels after completion of negotiations with the third-party market makers. In addition, JPEX announced the use of a decentralized autonomous organization (DAO) to collect user suggestions regarding its restructuring. The Hong Kong Securities and Futures Commission (SFC) previously warned JPEX for allegedly promoting its services to Hong Kong residents without a license. Following the warning, local police in Hong Kong have received 83 complaints against the exchange.
Published At
9/18/2023 1:26:03 AM
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