News

MEXC In Hong Kong Was Issued A Warning By The SFC Against

Key Points:

  • Hong Kong SFC warns against unlicensed platform MEXC, citing regulatory risks.
  • MEXC in Hong Kong lacks an SFC license, violating Anti-Money Laundering laws.
  • SFC’s move mirrors action against Bybit, underscoring efforts to regulate the crypto industry in Hong Kong.
The Securities and Futures Commission (SFC) of Hong Kong has issued a stern warning to the public regarding the unlicensed virtual asset trading platform “MEXC,” cautioning investors against engaging with the platform due to regulatory concerns. 
MEXC In Hong Kong Was Issued A Warning By The SFC Against 2

SFC Issues Warning Against MEXC in Hong Kong

MEXC in Hong Kong has neither obtained a license from the SFC nor sought approval to operate, a violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. This lack of regulatory oversight poses significant risks to investors, as highlighted by the SFC.

Effective March 15, 2024, the SFC has placed MEXC in Hong Kong and its website on the Suspicious Virtual Asset Trading Platforms Alert List, urging investors to exercise caution. This action follows similar measures taken against the crypto exchange Bybit the previous day. 

Crackdown on Unlicensed Crypto Exchanges in Hong Kong

The SFC emphasizes that trading virtual assets on unregulated platforms like MEXC and Bybit can expose investors to various risks, including financial losses, in the event of platform shutdowns, collapses, hacks, or asset misappropriation.

MEXC’s history of suspected virtual-asset-related fraud and its recent marketing campaigns targeting Hong Kong investors have raised additional concerns among regulators. The platform failed to comply with regulatory requirements in other jurisdictions, including Japan and Germany.

This consumer alert comes as part of Hong Kong’s efforts to establish a robust regulatory framework for the cryptocurrency industry, with the SFC initiating consultations on sector-specific rules last year. As of June 1, firms operating in the country are required to obtain a license to operate, reflecting Hong Kong’s ongoing regulatory developments in the crypto space.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

9 minutes ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

25 minutes ago

Clanker Token Trading Volume Hits $59.8 Million High

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

53 minutes ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

1 hour ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

2 hours ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

4 hours ago

This website uses cookies.