In an assertive move indicative of the rising regulatory landscape globally, the Hong Kong Securities and Futures Commission (SFC) has thrown a warning punch at unregulated crypto exchange JPEX. The regulator has underlined that indulging in the promotion of its products to the city-state’s populace without requisite licenses may slingshot it into legal pitfalls, including but not limited to criminal charges. JPEX has been bringing its services to public attention through a brew of influencers and over-the-counter virtual asset money changers.
The object of the SFC’s heightened scrutiny also extends to JPEX’s savings product, promising an impressive 21% annual percentage yield for ETH, 20% for BTC, and 19% for USDT. Critics would argue this aggressive play simmers with substantial risk.
Under the glaring lens of the SFC, multiple foul balls were picked out from JPEX’s pitch to the public. Examples include trumpeting false claims of being a licensed platform for digital asset trading, luring investors with high annual returns and complaints around withdrawing virtual assets. Adding to the pool of irregularities are promises of products deviating from the SFC’s standardized regulatory framework.
Severe consequences might follow the practically misleading statements around finger-in-every-pie alliances – particularly with a Hong Kong-listed company. The influencers and OTC shops are found guilty of falsely endorsing JPEX’s licensing status on their social media profiles. Meanwhile, the SFC keeps vigil against any deceitful practices in the ascendant virtual asset industry, with a consequence bucket brimming with 1 million-dollar fines or seven-year imprisonments.
The regulator is all geared up to assume authority over entities fishing out fraudulent or deceptive practices connected to virtual assets and wield the regulatory sword against belligerents. The Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) recognizes any fraudulent activities around virtual assets as a punishable offense. Digital asset fraudsters might have to cough up up to 10 million dollars in fines or endure a maximum of ten years behind bars.
The SFC clearly signals its commitment to steadfastly apply the VATPs regime and encourages investors to bite the apple only after proper diligence. The double-edged sword of trading virtual assets on uncertified platforms is highlighted, with the potential issues linked to seeking recourse. Its call to action rings loud, prompting investors to refer to the SFC’s list of licensed virtual asset trading platforms before taking the leap into any VATP, a cautionary tale that resonates globally amidst the chaos of crypto’s booming market.
Source: Cryptonews
