Bitskwela Ends Partnership with JPEX Amid Regulatory Concerns

In recent developments surrounding the crypto world, Bitskwela, a leading Web3 education platform, announced its decision to terminate its partnership with the cryptocurrency exchange, JPEX. This comes as JPEX faces growing scrutiny from regulatory bodies.

Highlighting the Issues

JPEX, a cryptocurrency exchange, is under the microscope after the Hong Kong regulator (SFC) flagged the platform for potentially misleading claims regarding its registration. The SFC indicated that JPEX made false claims about having approvals from international regulators, which it did not have. Adding to the controversies, JPEX has also been involved in aggressive marketing campaigns using high-return financial product endorsements via social media influencers.

Bitskwela's Stance

Bitskwela, which had entered into an educational partnership with JPEX only a month prior, made a swift decision to distance itself from the exchange. The company said, “In the interest of the community that Bitskwela serves, and in our mission to lead people from interest to participation in Web3, Bitskwela immediately terminated the partnership with JPEX.”

The educational platform remains steadfast in its mission of enabling Filipinos to actively engage in the web3 ecosystem. They emphasized their commitment to regulatory compliance and clarified that, as of September 18, 2023, they are no longer associated with JPEX.

Bitskwela's CEO, Jiro Reyes, clarified that while they had featured JPEX as a trading option on their platform, they never explicitly directed their community to invest in JPEX or buy its coins.

Related news:

Breaking: Crypto Influencer Joseph Lam Arrested Over JPEX Scam in Hong Kong

Hong Kong crypto influencer Joseph Lam arrested over ties with JPEX exchange amid liquidity crisis investigations. JPEX suspends trades, faces regulatory scrutiny.

News 2023-09-18

相关内容

Concerns with JPEX's Alliance Program

JPEX rolled out its Alliance Program in 2022, resembling an affiliate initiative that many businesses deploy. This program aimed at building a strong international cryptocurrency ecosystem by roping in community leaders experienced blockchain enthusiasts, and Key Opinion Leaders (KOLs) from around the globe. Members of this alliance were given incentives based on their community size and promotional activities.

However, in light of JPEX's regulatory issues, the SPC has now directed influencers and OTC shops to stop promoting JPEX and its services. While some content is still live, many links to promotions have been removed.

The Role and Responsibility of Influencers

With the blurred lines of influencer endorsements in the crypto world, the Philippine Securities and Exchange Commission (SEC) earlier this year clarified the potential legal consequences that content creators, streamers, and social media personalities might face for endorsing unregistered projects.

Furthermore, the SEC increased its list of persons who might be held liable if their sponsored businesses are found to be unlawful or unregistered in 2022. Legal consequences for such offenses might include up to $5 million in fines or up to 21 years in jail.

Even while many influencers include disclaimers such as “Not Financial Advice” or “Do Your Own Research (DYOR),” experts warn that these disclaimers may not be adequate to shield them from legal ramifications, particularly if the supported initiative turns out to be a fraud.

According to Edsel Tupaz, a well-known partner at a law firm, disclaimers cannot shield people against criminal conduct. Similarly, Rafael Padilla, a Blockchain Lawyer, expressed concern about the possible abuse of disclaimers, notably by crypto coaches who give financial advice without being properly licensed.

To stay updated on such news and other financial updates, you can install the WikiFX App on your smartphone.

Download link: https://www.wikifx.com/en/download.html