Hong Kong monetary regulator, the Securities and Futures Fee (SFC), issued a public warning about MEXC’s unlicensed operations inside its jurisdictions.
SFC acknowledged:
“The entity purports to be a digital asset buying and selling platform working on the above web site. It has been focusing on Hong Kong buyers however is just not licensed by the Securities and Futures Fee.”
Consequently, the platform has been added to Hong Kong’s checklist of suspicious digital asset buying and selling platforms, together with different notable crypto companies like ByBit.
Native legal guidelines violation
Per the SFC, MEXC’s operation within the city-state violated native legal guidelines.
In accordance with the SFC:
“Underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance, it’s an offence to hold on a enterprise of offering a digital asset service (ie, working a digital asset trade) in Hong Kong and/or actively market such providers to Hong Kong buyers with out a licence.”
This isn’t the primary time the SFC has issued a public warning associated to the MEXC trade. Earlier within the yr, the regulator acknowledged that scammers have been pretending to be from the crypto buying and selling platform and luring unsuspecting victims into taking part in what seems to be a crypto funding rip-off.
The scammers used hyperlinks with addresses that begin with “MEXC” and finish in random letters, just like phishing hyperlinks.
As such, the SFC mentioned it might pursue regulatory motion in opposition to the platform if vital.
“The SFC is not going to hesitate to take enforcement motion in opposition to unlicensed actions the place applicable,” it added.
In the meantime, the monetary regulator warned crypto buyers in opposition to buying and selling on unregistered platforms, including that they danger shedding their funding if the platform experiences any type of failure.
SFC’s MEXC warning is unsurprising, contemplating the monetary watchdog not too long ago ended its registration window for crypto companies to apply for licensing to function throughout the Asian city-state. Unregistered entities should shut their companies by the top of Might.
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