The Securities and Futures Commission (SFC) has issued a warning to the public regarding a purported virtual asset trading platform (VATP) operating under the name "MEXC."
MEXC's Unauthorized Operations Highlight Regulatory Breach
The SFC's caution comes amidst the active promotion of its services to Hong Kong investors, despite MEXC neither holding a license from the SFC nor initiating the process to obtain one for operating a VATP in Hong Kong.
Operating a business of providing virtual asset services, such as running a virtual asset exchange, without proper licensing is a violation of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. Furthermore, actively marketing such services to Hong Kong investors without authorization is considered unlawful.
As a result, the SFC has taken decisive action by listing MEXC and its website on the Suspicious Virtual Asset Trading Platforms Alert List as of March 15, 2024.
The Hong Kong SFC issued another warning today, warning the public to beware of the MEXC unlicensed virtual asset trading platform, and stated that MEXC has been actively promoting its services to Hong Kong investors. Yesterday, the SFC placed Bybit on the warning list.…
— Wu Blockchain (@WuBlockchain) March 15, 2024
SFC Advises Caution amidst Growing Virtual Asset Risks
The SFC's warning underscores the risks associated with trading virtual assets on unregulated platforms. Investors are cautioned that in the absence of regulatory oversight, they face significant vulnerabilities, including the potential loss of their entire investment. Instances such as operational cessation, collapse, hacking, or misappropriation of assets can leave investors exposed to substantial financial harm.
Earlier, the SFC cautioned investors against Bybit and its offerings due to the cryptocurrency exchange's lack of licensing. Specifically, 11 of Bybit's products have been flagged as suspicious investments, including futures contracts, options, and leveraged tokens.
In light of these concerns, the SFC urges investors to exercise vigilance and refrain from engaging with unlicensed VATPs. For those uncertain about the licensing status of a VATP, the SFC directs them to consult its List of licensed virtual asset trading platforms for verification and protection.
This article was written by Tareq Sikder at www.financemagnates.com.
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