Japanese investors should be wary of organisations that provide cryptocurrency trading under the JPX brand name, logos, and URLs.
The owner of the Tokyo Stock Exchange and the Osaka Exchange, Japan Exchange Group (JPX), has issued a warning to the public about organisations that are misleading Japanese investors by offering crypto assets under the JPX brand.
JPX issued the warning after learning about an ongoing scheme to deceive unsuspecting investors into trading Bitcoin (BTC) and other cryptocurrencies on platforms posing as JPX or one of its subsidiaries.
Alert on trading in crypto assets using similar names to JPXhttps://t.co/CVrvpA0dNE
— Japan Exchange Group EN (@JPX_official_EN) February 8, 2022
The bogus organisations in issue are using JPX names, logos, and URLs in various versions — including iterations of JPEX, jpex, and Japan Exchange — for their platforms and marketing campaigns, according to the company. According to JPX’s warning,
“Please be informed that the aforementioned firms and trades have no affiliation with Japan Exchange Group, Inc. (JPX) or any other JPX Group entities.”
While JPX has not yet allowed Japanese investors to trade cryptocurrency, the company is actively leading a number of initiatives to test blockchain and distributed ledger technology (DLT) with traditional finance.
According to JPX, the above effort uses blockchain technology to improve data transparency and data collecting efficiency. Furthermore, the company has initiated testing and research with 33 Japanese financial institutions to discuss the idea of implementing blockchain or distributed ledger technology (DLT) to its existing capital market infrastructure.
— MiniTesla (@MiniTeslaOffici) January 16, 2022
Bad actors try to gain credibility for their initiatives by imitating well-known brands such as Tesla, Jurassic Park, Meta, and Animoca Firms, despite having no affiliation with the brands themselves.
Japan’s aim for crypto adoption has been met with a surge in attempts to defraud prospective investors. The Japanese government is said to have planned a proposal earlier this month to make it easier for registered crypto exchanges to list digital assets in the local retail trading market.
If the plan passes, exchanges registered with the Financial Services Agency (FSA) will be able to offer some assets without having to go through a lengthy screening process.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.