JPEX crypto exchange facing liquidity crisis, is it the next FTX?
JPEX crypto exchange is currently facing a very high liquidity crisis. To overcome the situation, the exchange team increased fund withdrawal fees.
JPEX is a crypto assets trading platform, founded in 2018 in Japan. This exchange provides over 50 crypto assets trading for customers globally. This Exchange is also regulated in Canada.
At present, JPEX is going through a liquidity crisis. On 17 Sep 2023, this crypto exchange brought light to this matter and blamed regulators & third-party market makers responsible for this situation.
According to JPEX, third-party Hong Kong-based institutions unfairly froze liquidity for JPEX following negative news, so they are demanding more information about the business operations.
“They demanded more information from the platform for negotiation, restricting our liquidity and significantly increasing our daily operating costs, leading to operational difficulties,” JPEX explained.
In this situation, the JPEX team is failing to make a profit which is causing high expenses for its Crypto services. From 18 Sep, the exchange decided to suspend its crypto Earn Orders services, & existing orders will continue to the end date.
For now, spot trading services will remain available without any disturbance. The JPEX promised that it will fix the whole situation soon.
Some customers alleged that JPEX is going to be the next FTX exchange, a bankrupt crypto exchange, as the exchange suspended crypto withdrawal services indirectly.
A JPEX customer shared a screenshot of the JPEX withdrawal dashboard and showed that the exchange increased withdrawal fees by 1000-fold. That means a single withdrawal requires a 1,000 USD fee.
In the blog post, JPEX mentioned this issue and ensured that it would fix this issue as soon as possible. However, the JPEX blog failed to mention high fees but mentioned that it will adjust withdrawal fees to normal.
The whole situation occurred because of a statement passed by the Hong Kong Securities and Futures Commission (FSC) which directly targeted JPEX for providing crypto services to Hong Kong residents without having a license.
Read also: CoinEx urges hackers to accept bounty reward & return $70M stolen cryptocurrencies
