OKEx Is Illegally Conducting Crypto Futures in China, Says China National Radio
China National Radio (CNR), a state-run media outlet pointed out that the Hong Kong-based cryptocurrency exchange OKEx is providing illegal services in China, reported on Thursday, May 3.
China had unequivocally banned ICO and forced the closure of domestic cryptocurrency exchanges last September, while most Chinese crypto exchanges chose to move overseas to continue their services mostly facing Chinese investors.
To dodge regulations in the country, OKEx, launched by OKCoin which used to be the largest crypto exchange in China, got itself registered in Belize and moved its headquarter to Hong Kong, and seems to have no relationship with OKCoin since then.
But its users believe that OKEx is still under the operation of OKCoin in Beijing. A trader even threatened to commit suicide in front of OKCoin’s Beijing office as they could not find OKEx responsible for their big loss in the “3.30 incident”.
As the latest article of a series targeting to unveil the secrets behind cryptocurrency series by the national radio’s “Voice of China” program, the article titled “the unabated crypto exchanges” aired its doubt about the legality of services provided by OKEx, including conducting unregulated crypto futures that use leverage to increase returns in great risks, as well as “peer-to-peer” over-the-counter transactions that allow users to buy or sell cryptocurrencies directly from individuals via Alipay or WeChatpay, quoted from its users surnamed Li and Yang.
Yang claimed that OKEx has no corresponding qualifications and it is under no regulations in the country after it moved to overseas. Suffering big losses in the irregular transactions on the platform, Yang and many users have reported to police and related authorities, but were told that they have no right to undertake enforcement and financial bureau has been handling this.
It is found that the service hotline of the company’s overseas branches cannot be connected, only the one within the country was answered, and the customer service staff repeatedly stated that OKEx is an overseas company.
Previously in early March, as reported by 8BTC, the official WeChat account of OKEx were closed as a result of user’s complaint report during the 3.15 period.