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. 

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.