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 concentrating on Hong Kong traders however just isn’t 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.
Based on the SFC:
“Beneath 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 change) in Hong Kong and/or actively market such providers to Hong Kong traders with out a licence.”
This isn’t the primary time the SFC has issued a public warning associated to the MEXC change. Earlier within the yr, the regulator acknowledged that scammers had been pretending to be from the crypto buying and selling platform and luring unsuspecting victims into collaborating 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, much like phishing hyperlinks.
As such, the SFC stated it might pursue regulatory motion towards the platform if essential.
“The SFC won’t hesitate to take enforcement motion towards unlicensed actions the place applicable,” it added.
In the meantime, the monetary regulator warned crypto traders towards buying and selling on unregistered platforms, including that they threat dropping their funding if the platform experiences any type of failure.
SFC’s MEXC warning is unsurprising, contemplating the monetary watchdog just lately ended its registration window for crypto companies to use for licensing to function inside the Asian city-state. Unregistered entities should shut their companies by the tip of Could.
The submit Hong Kong SFC expands violations checklist including MEXC for unlicensed operations appeared first on CryptoSlate.
