The crypto exchange JPEX is currently facing a very high liquidity crisis. To overcome the situation, the exchange team increased the withdrawal fees.
JPEX is a crypto asset trading platform founded in 2018 in Japan. This exchange offers more than 50 crypto assets traded for clients around the world. This exchange is also regulated in Canada.
Currently, JPEX is experiencing a liquidity crisis. This crypto fair will take place on September 17, 2023 brought light on the matter and blamed the regulators and third-party market makers responsible for this situation.
According to JPEX, third-party Hong Kong-based institutions have wrongly frozen liquidity for JPEX following negative news, and are therefore demanding more information about the company’s operations.
“They demanded more information from the negotiation platform, which limited our liquidity and significantly increased our daily operating costs, leading to operational issues,” JPEX explains.
In this situation, the JPEX team fails to make a profit, causing high costs for its Crypto services. As of September 18, the exchange has decided to suspend its crypto Earn Orders services, and existing orders will continue until the end date.
For the time being, spot trading services will remain available without any disruption. The JPEX promised that it will resolve the entire situation quickly.
Some customers claimed that JPEX would become the next FTX exchange, a bankrupt crypto exchange, as the exchange indirectly shut down cryptocurrency withdrawal services.
A JPEX customer shared a screenshot of the JPEX withdrawal dashboard showing that the exchange increased withdrawal fees by a factor of 1000. That means a single withdrawal will require a fee of USD 1,000.
In the blog post, JPEX mentioned this issue and ensured that it would resolve this issue as soon as possible. However, the JPEX blog did not mention high fees but stated that withdrawal fees will be adjusted to normal.
The entire situation occurred due to a statement from the Hong Kong Securities and Futures Commission (FSC), which directly targeted JPEX for providing crypto services to Hong Kong residents without being licensed.
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