Recently, the Securities and Futures Commission (SFC) in Hong Kong issued a public warning regarding the unauthorized operations of the MEXC exchange within its jurisdiction. The entity claims to be a virtual asset trading platform but is not licensed by the SFC to operate in Hong Kong. As a result, MEXC has been added to the list of suspicious virtual asset trading platforms in the city-state, along with other notable crypto firms like ByBit.
The SFC highlighted that MEXC’s operation in Hong Kong violates local laws, specifically under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. It is considered illegal to provide virtual asset exchange services or actively market such services to Hong Kong investors without the necessary license. This is a serious offense that the SFC takes very seriously.
This is not the first time that the SFC has issued a warning related to the MEXC exchange. Earlier in the year, the regulator warned of scammers pretending to be affiliated with the platform and conducting fraudulent activities. These scammers used deceptive tactics, such as using links with addresses starting with “MEXC” and ending in random letters, to trick unsuspecting victims into participating in potential crypto investment scams.
Enforcement Actions and Risks
The SFC has stated that it will not hesitate to take regulatory action against the MEXC platform if necessary. The financial regulator also warned crypto investors against trading on unregistered platforms, emphasizing the risks involved in doing so. In the event of any failure on the platform, investors risk losing their investments. It is crucial for investors to be aware of the risks associated with trading on unauthorized platforms.
The warning issued by the Securities and Futures Commission regarding the unauthorized operations of the MEXC exchange in Hong Kong serves as a reminder of the importance of regulatory compliance in the cryptocurrency industry. It is essential for investors to exercise caution and conduct thorough due diligence before engaging with any virtual asset trading platforms. Failure to do so may result in financial losses and potential legal repercussions. The SFC’s proactive stance against unlicensed activities demonstrates its commitment to protecting investors and maintaining the integrity of the financial market in Hong Kong.