SFC Warns Against MEXC
Hong Kong’s Securities and Futures Commission (SFC) has placed cryptocurrency exchange MEXC on its warning list for illegally targeting Hong Kong-based investors. MEXC has not obtained a license from the SFC nor applied for a virtual asset trading platforms (VATP) license. Operating a virtual asset exchange or actively marketing such services without a license is prohibited under Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The SFC has warned investors about trading digital assets on unregulated exchanges as they risk losing their entire investment if the platform ceases operation. This warning follows the recent inclusion of Bybit crypto exchange on the SFC’s warning list.
MEXC is currently the 11th largest cryptocurrency exchange in the world based on trading volume, handling over $2.19 billion in trades within a 24-hour period. The exchange offers access to 1,942 different cryptocurrencies and receives more than three million visits each week. Despite its popularity and activity in Hong Kong, MEXC remains unlicensed and unauthorized.
This is not the first time that the SFC has taken action against fraudulent websites impersonating major local crypto exchanges. In early March, the SFC issued a warning about suspicious websites impersonating OSL Digital Securities and Hash Blockchain Limited. Some of these fake websites also impersonated MEXC. In fact, the SFC blacklisted eight domains that were pretending to be MEXC earlier in February.
Crypto exchanges operating in Hong Kong were given a deadline to submit VATP applications by the end of February. Any unlicensed firms must cease operations in the region by May 31. Even if their applications are rejected, exchanges have three months to leave the city. Currently, only two crypto exchanges in Hong Kong have obtained licenses from the SFC: OSL exchange on December 15, 2020, and HashKey Exchange on November 9, 2022. MEXC, along with other unlicensed exchanges, must comply with these regulations or face legal consequences.
3 thoughts on “SFC Warns Against MEXC”
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Wow, I had no idea that MEXC was operating without a license in Hong Kong! This is a serious violation of regulations and investors should be cautious. Thank you for the warning, SFC!
It’s really concerning to see these unlicensed crypto exchanges targeting investors in Hong Kong. The SFC is doing a great job in protecting us from potential scams and fraudulent activities.
MEXC’s high trading volume and vast cryptocurrency options don’t excuse their illegal activities. It’s disappointing to see them prioritizing profit over the safety of investors. Shameful!