Hong Kong’s SFC Flags MEXC in Crypto Scam Alert

The Securities and Futures Commission (SFC) of Hong Kong has issued a warning about a potential fraud linked to the cryptocurrency exchange MEXC. The alert, raised on February 9, came after police reports highlighted a scheme by an entity claiming to be a digital asset exchange, MEXC, deceiving individuals.

This advisory has led to the inclusion of MEXC and its associated online platforms on a watchlist for dubious digital asset exchanges, with law enforcement taking steps to restrict access to MEXC’s websites.

In an ongoing effort to curb illegal activities related to digital asset trading, the SFC and law enforcement agencies are collaborating closely, exchanging vital information through a dedicated task force.

The regulatory body has raised concerns about MEXC’s methods, particularly its practice of attracting individuals into social media or messaging app groups under the pretense of offering complimentary investment advice. Once in these groups, individuals keen on purchasing cryptocurrencies were directed to MEXC’s platforms and encouraged to transfer funds to specific bank accounts for investment purposes. Subsequently, these individuals faced challenges when attempting to withdraw their funds.

The SFC has previously alerted unregistered crypto exchanges about the need to secure licenses by February 29 or cease operations by May 31. This move is part of Hong Kong’s broader strategy to establish a regulatory framework for digital asset trading platforms, aiming to facilitate licensed exchanges to offer services to retail investors. To date, Hong Kong has approved licenses for two trading platforms, HashKey and OSL, out of 14 cryptocurrency businesses that have applied.

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