Founded in 2018, JEX Exchange is a Singapore-based cryptocurrency trading venue, run by JEX Technology Limited. The company behind the project is registered in Seychelles and operates under the local law framework. According to the information on its website, JEX is “the first blockchain asset transaction platform that initiated Bitcoin options trading and other crypto options trading in the world.”
The exchange’s website states also that its team is composed by the core of OKCoin, a cryptocurrency exchange, founded in 2013 and situated in San Francisco. If that is the case and the team behind JEX Exchange really is the same one that has established and currently runs OkCoin, then it is worth mentioning the profile of OkCoin’s founder - Tim Byun. He is a well-respected professional with substantial industry experience and managing positions at companies like Visa, BitPay, the Federal Reserve Bank of San Francisco and Asahi Bank. However, his LinkedIn profile does not mention anything about the JEX Exchange.
If there is one thing that becomes clear from the information on the exchange’s website, it is that the team is not short of self-praise. The “About” section states that “the JEX team can be regarded as the most experienced development and operation team of trading platform of the industry at present.” Aside from such buzz descriptions, at the time of this writing, there is no additional information about the members of the JEX Exchange team. According to materials in local Singaporean media, the JEX Exchange’s team consists of 50 employees and is funded by angel investors Huobi and Node Capital. The exchange’s website partially confirms that by pointing out that the project is backed by “top blockchain institutes” like Huobi and Golden Finance.
Another thing worth mentioning is the website’s poor English. Although this may not be a significant problem regarding general information, when it comes to the “Terms and Conditions” page, the lack of proper vocabulary and precise phrasing paves the way for speculations with important information. For example, the JEX Exchange’s terms state the following: “In any situations, our liabilities of indemnity to you for direct damages shall not exceed the total expenses generated from your using the services rendered by the website for three (3) months. In the event of your violation of this agreement or other laws, rules, and regulations, you should indemnify us at least USD 2 million and bear all the costs and expenses resulted therefrom (including attorney fees). If the above amount is insufficient to compensate the actual losses, you must make up it.” The information above should act as a red flag for investors considering whether to use the exchange. Before making a decision, it is advisable to figure out what the legal interpretation of JEX Exchange’s terms is.
At the time of this writing, there is no information about hacks or law investigations on JEX Exchange. Public feedback from clients is also hard to find. However, things are very different when we take a look at the broader picture with related exchanges like OkCoin and OkEx (an exchange that belongs to OkCoin). In 2017, a significant number of OkEx clients’ accounts were hacked, which resulted in losses worth more than $3 million. Aside from that, there are cases of clients suing OkCoin for denying forked BCH withdrawals (the exchange’s team dismissed the claim). OkCoin was also fined by the Korea Communication Commission (KCC) due to violation of users’ privacy and data protection. OkCoin received another penalty from the KCC for violating user rights by making it more difficult for members to withdraw their funds.
The fact that OkCoin has a history of fines for failure to prevent breaching of its client’s personal information and even violation of the corresponding policies is very concerning, considering the amount of personal information JEX collects from its clients. On the “How to unlock account” page on its website, it points out that for one to unlock his account, he should provide a valid photo of an ID document (both sides of the document) and a full-face photo of the account holder. Providing personal information of such importance to an exchange that is known for failure to protect its customers’ data should be well-considered, if not avoided.Read More