The Securities and Futures Commission (SFC) in Hong Kong recently issued a public warning regarding the unlicensed operations of MEXC, a virtual asset trading platform targeting investors in the city. The SFC emphasized that MEXC is not licensed by the commission and therefore is in violation of local laws.
According to the SFC, under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, providing virtual asset services without a license is considered an offense. This includes operating a virtual asset exchange in Hong Kong or actively marketing such services to investors in the region. As a result, MEXC has been added to the list of suspicious virtual asset trading platforms in Hong Kong.
This is not the first time the SFC has raised concerns about MEXC. Earlier, the regulator highlighted instances where scammers impersonated the exchange to lure victims into fraudulent crypto investment schemes. The scammers used phishing links with addresses resembling that of MEXC, raising red flags for potential investors.
In response to the unauthorized activities of MEXC, the SFC has warned that it may take regulatory action against the platform if deemed necessary. The commission reiterated its commitment to enforcing regulations and protecting investors from potential financial risks associated with unlicensed exchanges.
The SFC cautioned crypto investors against trading on unregistered platforms like MEXC, as they could face significant losses in the event of operational failures or fraudulent activities. The commission’s priority is to safeguard the interests of investors and maintain the integrity of the financial markets in Hong Kong.
The warning against MEXC comes at a time when the SFC has closed the registration window for crypto firms seeking licenses to operate in Hong Kong. Unregistered entities are required to cease their operations by the end of May, underscoring the importance of regulatory compliance in the evolving crypto landscape.
The SFC’s public warning about MEXC serves as a reminder of the regulatory scrutiny faced by virtual asset trading platforms in Hong Kong. Investors are advised to exercise caution and conduct thorough due diligence before engaging with any crypto exchange to mitigate potential risks and protect their investments.