The Securities and Futures Commission (SFC) of Hong Kong has included MEXC, a cryptocurrency exchange, in its warning list on March 15. Despite not having a license from the SFC or applying for a virtual asset trading platforms (VATP) license to operate in Hong Kong, MEXC is actively promoting its services to investors in the region, as stated by the FSC. The FSC emphasizes that it is illegal to provide virtual asset services or market them to Hong Kong investors without the necessary license. Cointelegraph has reached out to MEXC for a comment.
The SFC also cautions investors against trading digital assets on unregulated exchanges, as there is a risk of losing the entire investment if the platform ceases operations. This warning comes a day after Bybit crypto exchange was added to the SFC’s warning list, which currently consists of 20 crypto exchanges.
MEXC is ranked as the 11th-largest cryptocurrency exchange globally in terms of trading volume, with a 24-hour volume of over $2.19 billion, according to CoinMarketCap. The exchange attracts over three million weekly visits and provides access to 1,942 cryptocurrencies.
The SFC has previously taken action against fake websites that impersonate well-known local crypto exchanges. On March 4, the SFC issued a warning regarding multiple suspicious websites impersonating licensed crypto trading platforms, OSL Digital Securities and Hash Blockchain Limited (also known as HashKey). Some of these blocked fake websites also impersonated MEXC, with eight domains being blacklisted by the SFC on February 9.
Crypto exchanges in Hong Kong were required to file for a VATP application by February 29. Unlicensed firms must cease operations in Hong Kong by May 31. Similarly, exchanges whose VATP applications are rejected by the SFC must leave the city within three months.
Currently, only two crypto exchanges in Hong Kong hold licenses from the SFC: OSL exchange, which obtained a license on December 15, 2020, and HashKey Exchange, which was licensed on November 9, 2022.
Hong Kong has recently entered the second phase of its central bank digital currency (CBDC) pilot program.