The Securities and Futures Commission (SFC) of Hong Kong recently issued a public warning about the unlicensed operations of MEXC within its jurisdiction. The SFC highlighted that MEXC claims to be a virtual asset trading platform, targeting investors in Hong Kong, but it does not hold a license from the regulatory authority. As a result, MEXC has been identified as a suspicious virtual asset trading platform in Hong Kong, joining other notable crypto firms like ByBit on the watchlist.
Violation of Local Laws
According to the SFC, MEXC’s operations in Hong Kong are in violation of local laws, specifically the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The ordinance states that conducting a business of providing virtual asset services, such as operating a virtual asset exchange, in Hong Kong without the necessary license is considered an offense. The SFC emphasized that actively marketing such services to Hong Kong investors without proper authorization is also illegal.
This is not the first time the SFC has raised concerns about MEXC. Earlier this year, the regulator issued a warning about scammers impersonating representatives from the crypto trading platform. These scammers misled unsuspecting individuals into participating in what appeared to be a crypto investment scam. The fraudulent activities involved using links with addresses starting with “MEXC” followed by random letters, resembling phishing links. In response, the SFC stated that it could take regulatory action against the platform as needed to protect investors.
The SFC made it clear that it would not hesitate to take enforcement action against unlicensed activities, particularly those involving virtual asset services. The regulator advised crypto investors to avoid trading on unregistered platforms to mitigate the risk of losing their investments in case of platform failure. The warning to investors comes at a time when the SFC has closed the registration window for crypto firms to seek licensing in Hong Kong. Unregistered entities operating in the city-state are required to cease their operations by the end of May to comply with regulations.
The SFC’s recent warning about MEXC’s unlicensed operations serves as a reminder of the regulatory scrutiny facing virtual asset trading platforms in Hong Kong. The regulator’s actions aim to protect investors from potential scams and ensure compliance with financial laws and regulations. It is crucial for all crypto firms operating in the region to adhere to licensing requirements and avoid engaging in activities that could harm investors or violate legal standards.
Leave a Reply