Struggling Cryptocurrency Exchange JPEX Considers Transition to DAO Following Regulatory Probe
Reports have emerged that JPEX, a cryptocurrency exchange based in Hong Kong, has ceased its trading operations and faced the arrest of an individual associated with the platform due to allegations of operating without an appropriate license. This development comes following an investigation conducted by the Hong Kong Securities and Futures Commission (SFC), which also disclosed receiving numerous complaints regarding JPEX.
In response to the regulatory inquiry and its subsequent consequences, JPEX has announced its decision to delist all transactions on its Earn Trading interface while ensuring the fulfillment of ongoing orders. Additionally, the exchange intends to gradually revert withdrawal fees to their standard rates. More notably, JPEX is exploring the possibility of restructuring itself into a Decentralized Autonomous Organization (DAO).
In a blog post published on Monday, JPEX expressed its frustration, stating, “Recently, due to the unfair treatment by relevant institutions in Hong Kong towards JPEX, a cryptocurrency trading platform, and a series of negative news, our partnered third-party market makers have maliciously frozen funds. They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties.”
Cryptocurrency Exchange JPEX Contemplates Shift to DAO Amid Regulatory Investigation
“At this juncture, we find it imperative to undergo a restructuring process to redefine our operational trajectory and collaboratively devise future strategies for JPEX,” the post continued. “To facilitate this, we will actively seek input from our user base, engage in discussions with our dedicated team, and select feasible plans for a user referendum. Specific details regarding the referendum’s implementation will be disclosed in the near future. We eagerly anticipate user involvement as we chart our path forward together.”
Reports from Taiwan indicate that JPEX’s Taipei office is currently vacant, with authorities questioning influencers affiliated with the exchange. Attendees at JPEX’s booth during the recent Token2049 conference in Singapore noted that the booth appeared abandoned by the second day.
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