Crypto Exchange JPEX Is In Trouble
How much fee do you pay for withdrawing crypto from exchanges? You usually pay a small amount as a fee. It is negligible what users pay as a fee. The withdrawal fee can vary based on which network you are using and which crypto you are going to withdraw. But you have never imagined paying an extremely high fee like 99%.
You will basically stop withdrawing crypto from the crypto exchange. If you pay so much fee to withdraw cryptocurrencies, it is not worth it. Dubai-based crypto exchange JPEX started raising its withdrawal fee to higher levels. It is ridiculous to pay that fee.
So what happened and why did JPEX charge the withdrawal fee to the extreme level? JPEX blamed regulators and third-party market makers for freezing the exchange's funds. According to JPEX, they got unfair treatment and that causes the problem they are facing now.
The Hong Kong Securities and Futures Commission (SFC) received complaints about the crypto exchange JPEX. The SFC issued a warning against JPEX. The crypto exchange cannot operate its operation without having a license. It is not regulated in the country. Quickly the exchange's Hong Kong partners froze funds after getting a warning from the SFC.
Because of that, the crypto exchange is facing a liquidity crisis. Users can withdraw their funds and due to higher fees, it is highly discouraging to withdraw any crypto from the exchange. JPEX talked to its partner to deal with this problem.
Once they find a solution, the withdrawal fee will go down to the normal level. People can still do spot trading in the exchange. But the Earn program has been suspended. The existing earn program participated by users continues and no one can join the program now.
Hong Kong police have already arrested six people including two social media influencers so far for JPEX crypto fraud. Influencers promoted JPEX and its services. We usually have funds on crypto exchanges. In case the crypto exchange is in trouble, you may lose your crypto assets. It is better not to leave any funds on exchanges that you do not use.
Sometimes it is difficult to differentiate FUD and facts. You might ignore that assuming that's FUD. But you end up losing your crypto after the collapse of the exchange. You can reduce your exposure and it can help you in case the crypto exchange goes down. Here you focus on minimizing the loss.
You need to change based on the changing situation. So watch out, analyze, and make your move.
