The Hong Kong securities regulator said MEXC does not have the required license to operate in the country, which makes the platform’s operation a crime.
The Securities and Future Commission (SFC) of Hong Kong has issued a cautionary warning to investors regarding popular crypto exchange MEXC Global, urging them to exercise vigilance when dealing with the platform.
According to CoinMarketCap, the platform has a 24-hour trading volume of over $2.19 billion, with a current market cap of $362.97M. MEXC averages three weekly visits and provides access to 1,942 cryptocurrencies.
MEXC Not Licensed to Operate in Hong Kong
Despite not being licensed by the SFC or having applied for a license to operate a virtual asset trading platform (VATP), the exchange has actively promoted its services to Hong Kong investors.
“Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (i.e., operating a virtual asset exchange) in Hong Kong and actively market such services to Hong Kong investors without a license,” the SFC said.
On March 15, 2024, the SFC added MEXC and its website to the Suspicious Virtual Asset Trading Platforms Alert List, alongside other exchanges like Bybit and BitForex.
The securities regulator also warned investors against trading digital assets on unregistered exchanges, which may risk losing their investment held on the platform if it ceases operation.
In early February 2024, the SFC and police cautioned the public about a suspected virtual-asset-related fraud involving a separate entity that also uses the name “MEXC.”
Approved Crypto Exchanges
At the time of writing, only two crypto exchanges in Hong Kong are licensed by the SFC – the OSL exchange and HashKey Exchange.
The SFC noted that crypto platforms operating in Hong Kong that fail to submit license applications would need to cease business operations by the end of March.
MEXC Hong Kong’s KYC
Meanwhile, MEXC recently launched a marketing campaign targeting Hong Kong investors. In the campaign, new users who complete “KYC” within seven days of registration would be rewarded with 20 USDT.
In addition, the exchange said it would reward Hong Kong users who used the referral links by introducing friends to trade on the MEXC platform and reaching a specific trading volume with 10 MX.