Hong Kong’s Securities Regulator Adds MEXC to Warning List 🔥

The financial regulator's alert follows a previous caution to investors against Bybit exchange.

SFC warns about MEXC exchange in Hong Kong.

The Securities and Futures Commission (SFC) of Hong Kong has recently added cryptocurrency exchange MEXC to its warning list. Now, you may ask, what does this mean? Well, it means that MEXC is promoting its services to investors in Hong Kong without being licensed by the SFC or even applying for a virtual asset trading platform (VATP) license. 😱

Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance in Hong Kong, it’s a big no-no to operate a virtual asset exchange or market such services to Hong Kong investors without a license. It’s like selling ice cream without a license in summer – you’re going to get into some serious trouble! 🍦⛔

But wait, there’s more! The SFC has also warned investors against trading digital assets on unregulated exchanges. Why, you ask? Because if the exchange shuts down, you might lose your entire investment! It’s like buying a ticket to a roller coaster that suddenly disappears while you’re mid-air. Talk about a stomach-churning experience! 🎢😱

Now, let’s take a moment to appreciate MEXC’s trading volume and popularity. According to CoinMarketCap data, MEXC is the 11th-largest cryptocurrency exchange by trading volume, with a mind-boggling 24-hour volume of over $2.19 billion! It’s like a bustling marketplace filled with traders buying and selling cryptocurrencies left, right, and center. Talk about a frenzy! 📈💸

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But hold on, this isn’t the first time the SFC has taken action against fake websites impersonating crypto exchanges. They’ve been on a roll! Just recently, they warned against multiple suspicious websites impersonating two licensed crypto trading platforms, OSL Digital Securities and Hash Blockchain Limited (also known as HashKey). I guess it’s like playing Whack-a-Mole with scammers – they keep popping up, but the SFC is ready to whack ’em back down! 🔨🎪

Now, let’s address some burning questions you might have:

Q: What should I do if I have invested in MEXC?

A: If you’ve invested in MEXC or any other unregulated exchange, it’s time to reconsider your options. The SFC is warning about the risks involved, so it’s best to choose a licensed and regulated exchange that prioritizes investor protection. Safety first, my friends!

Q: Are there any other licensed crypto exchanges in Hong Kong?

A: Yes, indeed! The OSL exchange received its license on December 15, 2020, and HashKey Exchange was licensed on November 9, 2022. These exchanges have gone through the necessary regulatory checks and have the SFC’s stamp of approval. So, if you’re looking for a reputable exchange in Hong Kong, these two are worth considering!

Q: What’s the deadline for crypto exchanges to file for a VATP application in Hong Kong?

A: The deadline was on February 29, 2022. If crypto exchanges are unlicensed and fail to file an application, they must cease operations in Hong Kong by May 31, 2022. And even if they do file an application but it gets rejected, they have three months to pack their bags and bid farewell to the city. It’s like a crypto game of musical chairs – if you don’t grab a chair in time, you’re out!

Now, let’s take a moment to appreciate the SFC Alert List with a visual representation. Feast your eyes on this informative image:

SFC Alert List. Source: SFC

So, folks, remember to tread carefully when it comes to investing in cryptocurrencies. Stick to licensed exchanges and keep an eye out for those scammers trying to impersonate legitimate platforms. And hey, feel free to share this article with your fellow crypto enthusiasts on social media. Let’s spread the knowledge and protect one another! 🚀💪

References:

• Next Major Ethereum Targets According to Model
• MEXC says ‘clawbacks’ only affect delinquent traders as users report missing funds
• Hong Kong begins phase 2 of CBDC pilot
• SFC added Bybit
• SFC issued a warning

[SFC]: Securities and Futures Commission [MEXC]: Cryptocurrency exchange

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