JPEX, the cryptocurrency exchange is facing an acute liquidity crisis. While it moves to adjust fees, it is moving towards reorganization and in this matter, it has sought user input. JPEX has posted a blog in which it blamed its partners and regulators in Hong Kong for wrongdoing.
The exchange has alleged that 3rd– party market creators froze funds, causing an acute liquidity crisis. This crisis caused the exchange to raise its withdrawal pay of 999 Tethers (USDT) over a maximum deal of 1000 Tethers. JPEX has said that regulators had treated the firm unfairly. This had caused market makers to freeze their funds ‘maliciously.’
The Dubai-based crypto exchange has also blamed its partners. JPEX alleged that its actions had caused a liquidity crisis for the firm. The crypto exchange has suspended multiple operations, hiked the withdrawal fees, and also hit out at regulators and 3rd– market makers. It has alleged that they caused the liquidity catastrophe and fomented these consequences.
JPEX Blame Regulators For Being Unfair To The Crypto Exchange
In the blog post dated September 17, the exchange blamed Hong Kong-based regulators for what it said were unfair handling of the exchange. It also said that negative news about the crypto trading platform had led to its funds being frozen. The liquidity forced the exchange to hike its face to overcome the cash crunch. Earlier reports said that authorities in Hong Kong had warned investors to not invest in crypto firms who were pretending to be banking institutions.
JPEX, the crypto company, was singled out by the Hong Kong Securities and Futures Commission (SFC) for projecting itself as holding a license despite not having obtained the necessary authority. JPEX declared that following its crisis, all operations that were linked to its Earn products would stand delisted in September. New users would thus be blocked from new orders through the Earn product till the issue was resolved. Further, the standing orders for JPEX’s Earn will not go beyond the end date of the product.