Hong Kong’s Chief Executive John Lee known as for tighter laws on crypto buying and selling citing the latest alleged rugpull by the unlicensed crypto change JPEX.
Addressing a press convention, John Lee mentioned that the JPEX saga highlights the necessity for tighter crypto laws.
The city-state’s chief government mentioned that the administration will arrange efforts to coach traders and urge them to solely use licensed platforms which can be regulated by the Securities and Futures Commission.
Hong Kong Police Arrest Six Individuals in JPEX Probe
Earlier, Hong Kong authorities revealed that they’ve arrested six people, together with two social media influencers in relation with an investigation into the unlicensed crypto change JPEX.
As per the authorities, over 1,400 folks have filed complaints to the police concerning the JPEX change, involving round HK$1 billion, roughly $127 million, in losses.
Officers mentioned the six suspects, 4 males and two ladies, have been held on suspicion of conspiracy to defraud, and extra arrests might be made as their investigation into the change continues.
One of the arrested people is a well-known social media influencer and a proper lawyer Cham Lok.
He was arrested at his workplace on Monday as police seized suspected proof and an undisclosed amount of money.
JPEX Claims Unfair Treatment by Relevant Institutions
The troubled crypto change introduced to droop buying and selling in a weblog publish on Monday saying that their partnered third-party market makers have maliciously frozen funds.
The change cited unfair remedy by related establishments in Hong Kong in the direction of JPEX and a collection of detrimental information as a cause.
The change additional famous that their companions are actually demanding extra data from the platform for negotiation, limiting their liquidity and considerably rising day by day working prices, resulting in operational difficulties.
Currently working with out a license in Hong Kong, JPEX claims to be licensed by securities authorities in Australia and is registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).