Hong Kong Securities and Futures Commission: JPEX has never communicated on license-related matters

Odaily News The Hong Kong Securities and Futures Commission issued a statement on JPEX stating that JPEX claims to be a virtual asset trading platform and is not subject to regulation. Since March 2022, the Securities and Futures Commission has been paying close attention to the platform and has begun to investigate the alleged actions of the platform. Inquiries into false and misleading statements and unlicensed activities. Since JPEX has always adopted an uncooperative attitude and failed to make a substantive response to the CSRCs request, the CSRC subsequently included JPEX in the CSRCs list of unlicensed companies and suspicious websites in July 2022 (Note 2). The confidential communications disclosed by JPEX on its website formed part of the above-mentioned inquiries and investigations of JPEX by the SFC. The SFC confirmed that JPEX has never approached the SFC regarding a possible license application, and that none of the entities under the JPEX Group has been licensed by the SFC, nor has it applied to the SFC for a license to operate a virtual asset trading platform in Hong Kong. Therefore, there is no communication between the Securities Regulatory Commission and JPEX on matters related to licensing. The SFC subsequently obtained information that raised suspicions that the case involved fraud and therefore referred the matter to the police. As the investigation is ongoing, the SFC is unable to comment further. Notes: 1. JPEX’s move violates Section 378 of the Securities and Futures Ordinance and Section 76B of the Anti-Money Laundering Ordinance, which imposes a requirement on persons assisting the Securities and Futures Commission in conducting statutory inquiries or investigations to inform them duty to keep matters confidential. 2. Since then, and until the SFC issued another public statement mentioning JPEX by name on September 13, 2023, the SFC and the Investor and Financial Education Council have made at least nine times in total on their respective websites and social media Warnings are issued to investors on the platform and through television/radio about trading on unlicensed platforms and related misconduct.