Ad campaigns, star endorsers helped platform soar

JPEX Crypto Asset Platform has gained significant visibility through widespread celebrity and influencer endorsements.

Founded in 2019, JPEX operates under the oversight of Dubai regulatory body, the Virtual Assets Regulatory Authority. But the company website lacks detailed information about its founders and professional team.

Furthermore, it lacks a formal structure and does not have a chief executive.

Between September and October 2020, JPEX secured cryptocurrency licenses in the United States, Australia and Canada.

Each location had separate departments: JPEX in the US operates as a strategic adviser, the Australian branch focuses on market promotion and the Canadian counterpart is responsible for route planning and development.

JPEX has also not revealed its founders' identities.

According to JPEX's registration documents, the director of JPEX Technical Support is Kwok Ho Lun, who also owns a Hong Kong-based blockchain media company called CoinLedge.

When advertising in Hong Kong, JPEX employs terms such as "Japanese cryptocurrency exchange," "super popular" and "Japan Exchange."

But JPEX has not secured any licenses for virtual currency regulation from the Japanese Financial Services Agency and is not listed as a registered company with the FSA. Japan Exchange Group - or JPX - issued a warning last year that JPEX has no association with JPX or any other firms linked to the JPX Group.

JPEX launched its cryptocurrency platform in July 2020, offering a diverse range of services, including spot trading, futures contracts and savings accounts. JPEX also has unique offerings like NFT contract trading and gaming platforms in the metaverse. It offers users three financial management services including savings, liquidity, and decentralized finance.

Apart from stablecoins such as Binance USD, users have a choice of 36 different cryptocurrencies to select from.

Some JPEX products involve virtual assets like "deposits," "savings," or "earnings," which violate the Securities and Futures Commission regulations.

JPEX expanded it's Hong Kong presence through advertising campaigns and reportedly had allocated a budget of about HK$40 million for the purpose - with placements on MTR stations and taxis, along with celebrity endorsements featuring Hong Kong actor-singer Julian Cheung Chi-lam.

Malaysian-born Hong Kong model and actress Jacquelin Ch'ng Se-min also produced a video in mid-July promoting JPEX, but it has since been removed. She has also said she lost more than HK$100,000 in JPEX.

JPEX also enlisted Taiwanese singer Nine Chen as a spokesperson in November 2022. But Chen said he terminated his association with the firm in July.

himo.liu@singtaonewscorp.com