On March 15, Hong Kong’s Securities and Futures Commission (SFC) issued a warning against cryptocurrency exchange MEXC, adding it to its list of cautioned platforms. Despite not having a license from the SFC or applying for a virtual asset trading platforms (VATP) license to operate in Hong Kong, MEXC has been actively promoting its services to Hong Kong investors, according to the FSC’s statement. The SFC emphasized that it is illegal to provide virtual asset services or actively market such services to Hong Kong investors without a license, citing the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Cointelegraph reached out to MEXC for comment but has not received a response. The SFC also warned investors about trading digital assets on unregulated exchanges, highlighting the risk of losing their entire investment if the platform ceases operation. This warning follows the SFC’s recent addition of Bybit crypto exchange to its caution list, which now includes a total of 20 crypto exchanges.
MEXC is currently ranked as the 11th-largest cryptocurrency exchange in the world based on trading volume, with a 24-hour volume exceeding $2.19 billion, according to CoinMarketCap data. The exchange attracts over three million weekly visits and offers access to 1,942 cryptocurrencies.
The SFC has previously taken action against fake websites that impersonate major local crypto exchanges. In a recent warning issued on March 4, the SFC alerted investors to multiple suspicious websites impersonating licensed crypto trading platforms OSL Digital Securities and Hash Blockchain Limited (also known as HashKey). Among the previously blocked fake websites were those impersonating MEXC. On February 9, the SFC blacklisted eight domains that were impersonating MEXC.
The deadline for crypto exchanges operating in Hong Kong to file for a VATP application was February 29. Unlicensed firms are required to cease operations in the Special Administrative Region by May 31. Similarly, exchanges whose VATP applications are rejected by the SFC must also leave the city within three months. Currently, only two crypto exchanges in Hong Kong have obtained licenses from the SFC: OSL exchange, licensed on December 15, 2020, and HashKey Exchange, licensed on November 9, 2022.
In related news, Hong Kong has begun the second phase of its central bank digital currency (CBDC) pilot.