Hong Kong’s Securities and Exchange Commission (SFC) today issued a warning against an alleged virtual asset trading platform (VATP) known as ‘MEXC’.
MEXC, which actively promotes its services to Hong Kong investors, has neither been licensed by the SFC nor has it applied to the SFC for a VATP license to operate in Hong Kong.
Pursuant to the Anti-Money Laundering and Anti-Terrorist Financing Ordinance, it is an offense to carry on a virtual asset service business (eg operating a virtual asset exchange) in Hong Kong and/or actively dispose of such services in Hong Kong unlicensed investors.
The SFC added MEXC and its website to the Alert List for Suspicious Virtual Asset Trading Platforms on 15 March 2024.
The regulator warns investors against trading virtual assets on unregulated VATP. Investors may risk losing their entire investment held on the Platform if it ceases to function, collapses, is hacked or otherwise suffers from any misappropriation of assets. If you are in doubt about the licensing status of a VATP, please refer to the SFC’s List of Licensed Virtual Asset Platforms.
The SFC says it will not hesitate to take enforcement action against unlicensed platforms where necessary.