Hong Kong regulators want to tighten the noose across the crypto market after the arrest of six people following allegations of fraud round an unlicensed crypto alternate known as JPEX.

John Lee Ka-chiu, the chief government of Hong Kong, instructed reporters on Sept. 19 that the federal government would improve its efforts to tell buyers and remind them to solely utilise platforms which were granted SFC licences, reported AP Information.

The JPEX problem got here to the fore final week when the nation’s Securities and Futures Fee (SFC) notified the general public that they’d obtained over 1000 complaints associated to the unregistered crypto alternate platforms with clients complaining about collectively shedding over $128 million (1 billion Hong Kong gained) as a result of fraudulent alternate.

The SFC in its warning famous that JPEX was actively selling the platform’s companies and merchandise to the Hong Kong public via on-line celebrities and over-the-counter cash changers.

As the issues with JPEX turned public with the warning from the SFC, many customers of the platform discovered themselves unable to withdraw their funds whereas others complained about decreased pockets balances. After the Hong Kong watchdog’s warning to the alternate, the platform reportedly elevated its withdrawal payment to $1,0000 to discourage customers from withdrawing their belongings.

Associated: Binance CEO brushes off negativity, assures agency has ‘no liquidity points’

The crypto alternate later blamed third-party market makers for the continuing liquidity disaster on the platform that resulted within the hike of the withdrawal payment. The Hong Kong police additionally arrested influencer Joseph Lam (Lin Zuo) for his affiliation with crypto alternate JPEX.

Hong Kong established itself as a rising crypto hub in 2023 engaged on varied pro-crypto laws and opening the crypto buying and selling marketplace for retail clients. Nonetheless, unlicensed crypto platforms like JPEX have managed to idiot many customers within the nation as a consequence of a lack of know-how and consciousness. The regulatory physique is now working to coach folks on utilizing solely licensed platforms for his or her crypto buying and selling actions.

Gather this text as an NFT to protect this second in historical past and present your help for impartial journalism within the crypto area.