The Hong Kong SFC issued a warning against MEXC
The Hong Kong Securities and Futures Commission (SFC) added cryptocurrency exchange MEXC to its warning list on March 15.
MEXC is actively promoting its services to Hong Kong-based investors even if they are not licensed by the SFC or have not applied for a virtual asset trading platform (VATP) license to operate in Hong Kong, the FSC statement said.
Under the Anti-Money Laundering and Anti-Terrorism Financing Act, it is an offense in Hong Kong to provide a virtual asset service (ie operate a virtual asset exchange) and/or actively provide such services to Hong Kong. Cong investors without permission.
Cointelegraph has reached out to MEXC for comment.
The securities regulator has warned investors against trading digital assets on unregulated exchanges, as “investors may lose all their investments on the platform if it ceases to operate.”
The financial watchdog's warning comes a day after the SFC added Bybit crypto exchange to its warning list. The warning list currently includes 20 crypto exchanges.
MEXC is the world's 11th largest cryptocurrency exchange with a 24-hour trading volume of over $2.19 billion, according to CoinMarketCap data. The exchange averages over three million weekly visits and provides access to 1,942 cryptocurrencies.
Hong Kong's SFC has previously banned fake websites impersonating major domestic crypto exchanges. On March 4, the SFC issued a warning against two licensed crypto trading platforms, OSL Digital Securities and Hash Blockchain Limited, as well as several suspicious websites known as HashKey.
Some previously banned fake websites also impersonated the MEXC exchange. The SFC blacklisted eight domains impersonating MEXC on February 9.
RELATED: MEXC Says ‘Claves' Will Only Affect Rogue Traders As Users Report Missing Funds
The deadline for crypto exchanges operating in Hong Kong to submit applications for VATP has passed on February 29. Unlicensed firms must cease operations in the Special Administrative Region by May 31. Also, exchanges whose VATP applications have been rejected by the SFC should also be abandoned. city in three months.
So far, only two crypto exchanges in Hong Kong have been licensed by the SFC, OSL Exchange, which was licensed on December 15, 2020, and HashKey Exchange, which was licensed on November 9, 2022.
Related: Hong Kong Begins Phase 2 of CBDC Pilot
