The Securities and Futures Commission (SFC) in Hong Kong recently issued a public warning about the unlicensed operations of MEXC within its jurisdiction. The SFC mentioned that MEXC purports to be a virtual asset trading platform targeting Hong Kong investors, but it is not licensed by the regulatory body. As a result, MEXC has been included in the list of suspicious virtual asset trading platforms in Hong Kong, alongside other firms like ByBit. The SFC stated that MEXC’s operations in the city-state violate local laws, particularly the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
This is not the first time the SFC has issued a warning related to MEXC. Earlier this year, the regulator highlighted that scammers were impersonating the crypto trading platform to lure unsuspecting victims into potential investment scams. These scammers used links with addresses that resembled those of MEXC, a method commonly known as phishing. The SFC made it clear that it will not hesitate to take regulatory action against MEXC if necessary to protect investors from falling prey to fraudulent schemes.
The SFC’s warning serves as a reminder to crypto investors to exercise caution when trading on unregistered platforms. The regulatory body emphasized that investing in such platforms carries a high risk of losing funds, especially in cases where the platform faces operational issues or failure. The recent closure of the registration window for crypto firms to apply for licensing in Hong Kong further underscores the importance of adhering to regulatory requirements. Unregistered entities operating in the city-state are now required to cease their operations by the end of May to avoid facing enforcement action.
The SFC’s public warning regarding MEXC’s unlicensed operations highlights the ongoing efforts to safeguard investors and maintain regulatory oversight in the crypto market. It is crucial for market participants to verify the licensing status of platforms before engaging in transactions and to report any suspicious activities to the relevant authorities. The SFC’s proactive approach towards unlicensed operators demonstrates its commitment to promoting a safe and transparent financial environment for all stakeholders involved in the digital asset space.
