JPEX will suspend its earning functionality due to regulatory complaints.
Japan-based cryptocurrency exchange JPEX will suspend a key function early this week, the exchange said in an announcement published Sept. 17.
JPEX said it will delist all Earn Trading transactions on September 18. Similar to other staking or earning services, the feature allows users to deposit assets and provide liquidity in exchange for rewards. During the service suspension, users cannot place new earning orders, but existing orders will continue to generate rewards until the end date.
The service suspension does not appear to apply to all trading on JPEX, contrary to a report in the South China Morning Post citing the same blog post.
Still, the problem appears to extend beyond the affected Earn service. JPEX said in its latest announcement that complaints from Hong Kong authorities have led to the freezing of funds by its third-party market maker partners. These broken relationships, in turn, have led to reduced liquidity, higher operating costs, and operational difficulties for JPEX.
The company said it is working with partners to restore liquidity but will not release further details until negotiations are finalized.
Other developments led to service suspension
JPEX’s latest service reduction is just the latest in a series of developments that allege its regulatory status is inadequate.
Hong Kong’s Securities and Futures Commission (SFC) filed a complaint against JPEX on September 13 regarding various practices, including offering USDT returns. JPEX acknowledged the complaint on September 14 and responded by adjusting withdrawal fees for the USDT stablecoin. Specifically, the exchange significantly increased USDT withdrawal fees, seemingly allowing the company to keep a large portion of each withdrawal request.
JPEX also temporarily suspended another service, its gaming lobby, on September 15. The company claims that most of its services will continue to operate.
Notably, the SFC’s complaints extend far beyond JPEX’s interest-bearing services. The regulator also complained about the exchange’s failure to obtain a license, failure to accommodate customer withdrawals, and falsified partnerships, among other issues. The authority’s statement hints that the investigation is ongoing and expanding. #日本 #交易所
