MEXC is Operating Without License in Hong Kong, Regulator Warns

cryptonews.com:

The Securities and Futures Commission (SFC) of Hong Kong has issued a warning regarding the illegal activities of crypto exchange MEXC, which does not comply with current Hong Kong crypto regulations and operates without a license.

In a Friday  press release , the SFC stated that MEXC has been actively promoting its services to investors in Hong Kong, despite not having obtained a license from the SFC or even applying for one.

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is a criminal offense to conduct business as a virtual asset service provider, such as operating a virtual asset exchange, in Hong Kong without the necessary license. 

The regulator added that marketing such services to Hong Kong investors without proper authorization is also prohibited. 

In response to MEXC’s unlicensed operation, the SFC has added the platform and its website to the Suspicious Virtual Asset Trading Platforms Alert List. 

The regulator also highlighted the risks associated with trading virtual assets on an unregulated platform. 

“Once again, the SFC cautions investors against trading virtual assets on an unregulated VATP,” it wrote. 

“Investors may risk losing their entire investment held on the platform if it ceases operation, collapses, is hacked or otherwise suffers from any misappropriation of assets.”

The SFC said investors can refer to its list of licensed virtual asset trading platforms to verify the licensing status of a VATP.

Notably, this is not the first time MEXC has encountered regulatory issues. 

In April of last year, Japan’s Financial Services Agency revealed that MEXC had been operating in the country without proper registration. 

Furthermore, Germany’s Federal