Cryptocurrency exchange JPEX has stated that third-party market makers have ‘maliciously’ frozen funds causing a liquidity shortage on the platform.This reportedly led to substantial increases in daily operating expenses and operational challenges.
“To protect users’ interests, we are currently negotiating with these third-party market makers to resolve the liquidity shortage as soon as possible,” the statement declared.
JPEX Seeks a Swift Resolution
In a September 17 statement, JPEX announced the delisting of all transactions on its Earn trading interface, effective September 18th. JPEX attributes the suspension of the service to a liquidity shortage caused by third-party market makers.
“We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels.”
JPEX states that to ensure the platform stays stable, it must make changes to the structure. It further explains that it will gather input from users and internal staff, before putting it forward to a vote.
However, it notes that details will not be announced until after the negotiations are conducted, to avoid any conflict.
SFC’s Recent Warning About JPEX
JPEX’s challenges arise following a warning from the Hong Kong Securities and Exchange Commission (SFC). The SFC alleges that JPEX is actively promoting its services to the Hong Kong public. However, it does not hold a VATP license and has allegedly not even initiated the application process for one.
The SFC outlined several alleged flaws on JPEX’s website in the warning.
It disputes the claim that JPEX has received approval to facilitate cryptocurrency trading.
“It claims on its website and local advertorials to have obtained licences from certain overseas regulators to operate VATP, which is in fact not true,” the statement notes.
Disclaimer
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