- Hong Kongโs SFC has warned the public of a certain crypto exchange.
- The exchange is suspected of fraud.
- The exchange has been added to the regulatorโs alert list.
The Hong Kong Securities and Futures Commission (SFC) and the police have warned of a โsuspected fraud involving an entity purporting to be a virtual asset trading platform.โ
The development comes after the SFC recently reminded crypto exchanges to apply for a license under the city’s virtual asset regulation framework by February 29 or face an outright ban. The regulator also warned crypto traders to close accounts with unlicensed entities by March 1.
Hong Kong Cracks Down on MEXC
According to a recently issued press release, the entity purporting to be an exchange and is suspected of engaging in fraudulent activities has been operating in Hong Kong under the name MEXC.
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The SFC and the police alleged that MEXC โenticed victimsโ to join social media or instant messaging platforms โon the pretense of offering free financial advice.โ
โOn these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC.ย Victims were then asked to deposit funds into designated bank accounts for investment purposes but after that they reported difficulties with fund withdrawal.โ The statement read.
Following the warning, the SFC has added MEXC and its websites to the Suspicious Virtual Asset Trading Platforms Alert List. While the police took โsteps to block MEXCโs websites,โ the statement warned the public to beware of websites that may continue to use the exchangeโs domain.
Read about Hong Kongโs proposed โVirtual Asset Connect Schemeโ:
Hong Kong Crypto Intrigued by โVirtual Asset Connect Schemeโ
Stay updated on Hong Kongโs recent action against Worldcoin:
Hong Kong Privacy Watchdog Raids Worldcoin Offices
