Key Takeaways
- SFC revealed that MEXC had lured victims into joining social media or messaging platforms under the pretext of offering free financial advice.
- SFC has added MEXC to the Suspicious Virtual Asset Trading Platforms Alert List.
Amidst the tightening regulations in Hong Kong’s cryptocurrency landscape, the Securities and Futures Commission (SFC) and local law enforcement have raised alarms regarding a suspected fraudulent activity involving an entity posing as a virtual asset trading platform.
The spotlight turned on MEXC, an entity allegedly operating under the guise of an exchange within Hong Kong. According to a recent press release, the SFC and police revealed that MEXC had lured victims into joining social media or messaging platforms under the pretext of offering free financial advice.
Victims expressing interest in purchasing cryptocurrencies were directed to websites purportedly operated by MEXC. Upon depositing funds into designated bank accounts for investment purposes, victims encountered difficulties with fund withdrawals, prompting concerns of fraudulent behavior.
In response, the SFC has taken swift action by adding MEXC and its associated websites to the Suspicious Virtual Asset Trading Platforms Alert List. Concurrently, law enforcement authorities have undertaken measures to block access to MEXC’s websites. However, the public is urged to remain vigilant as other websites may emerge utilizing similar domain names associated with MEXC.
The warning follows the SFC’s recent reminder to crypto exchanges to seek licensing under Hong Kong’s virtual asset regulatory framework by February 29. Failure to comply may result in an outright ban, with traders advised to close accounts with unlicensed entities by March 1.
Hong Kong’s cryptocurrency licensing framework, introduced last year, aims to regulate virtual asset trading platforms, ensuring compliance and consumer protection. Currently, the city-state has licensed two platforms—HashKey and OSL—following rigorous evaluations of applications from 14 crypto companies.
