The Securities and Futures Commission (SFC) in Hong Kong recently issued a public warning regarding the unlicensed operations of MEXC exchange within its jurisdiction. The SFC emphasized that MEXC, a virtual asset trading platform targeting Hong Kong investors, is not licensed by the regulatory body. As a result, MEXC has been added to the list of suspicious virtual asset trading platforms, alongside other prominent crypto firms like ByBit.
According to the SFC, MEXC’s operation in Hong Kong violates local laws, specifically the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. It is considered an offense to provide virtual asset services, such as operating a virtual asset exchange, without the necessary license. The SFC has made it clear that actively marketing such services to Hong Kong investors without proper authorization is unacceptable.
This is not the first time the SFC has issued a warning related to MEXC exchange. Earlier this year, the regulator highlighted incidents where scammers posed as representatives of the crypto trading platform to lure unsuspecting victims into potential investment scams. The scammers used deceptive links resembling those of MEXC, leading to phishing attempts. The SFC stated that regulatory action may be taken against MEXC if deemed necessary to protect investors from fraudulent activities.
Enforcement Actions and Investor Protection
The SFC emphasized that it will not hesitate to take enforcement action against unlicensed activities, including shutting down unregistered platforms engaging in unauthorized virtual asset services. The regulator warned crypto investors against trading on unregistered platforms, cautioning them about the risks associated with potential financial losses if such platforms fail. It is crucial for investors to conduct due diligence and choose reputable, licensed exchanges to safeguard their investments.
The SFC’s warning against MEXC’s unlicensed operations comes at a critical time when the regulatory body has closed the registration window for crypto firms seeking licensing to operate in Hong Kong. Unregistered entities are required to cease their operations by the end of May, underscoring the importance of compliance with regulatory requirements in the rapidly evolving crypto industry. Compliance with licensing regulations is essential for maintaining trust and credibility within the digital asset ecosystem.
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