Hong Kong's SFC Issues Warning Against MEXC's Unlicensed Operations

By: Isha Das

Hong Kong's financial regulator, the Securities and Futures Commission (SFC), has publicized a warning regarding the unlicensed operations of MEXC within its jurisdictions. The SFC stated that the platform has been operating as a virtual asset trading platform without appropriate licensing, thereby targeting local investors illegally.

This has led to the addition of MEXC to Hong Kong's list of suspicious virtual asset trading platforms, which includes other notable crypto firms. The SFC clarified that under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offence to conduct a business providing virtual asset services or operating a virtual asset exchange without necessary licensure.

The regulator has previously issued public warnings related to MEXC, pointing out instances where scammers impersonated the crypto trading platform to lure victims into crypto investment scams. In line with these actions, the SFC has indicated its willingness to enforce regulatory action against any unlicensed activities.

The commission has cautioned crypto investors against trading on unregistered platforms, stressing the potential risk of investment loss in case of platform failure. This warning is part of a broader regulatory action, as the SFC has recently closed its registration window for crypto firms needing licenses to operate within the region.