The Securities and Futures Commission (SFC) has warned the public about an alleged virtual asset trading platform (VATP) operating under the name “MEXC”.
While MEXC does not hold a license from the SFC or have initiated the process of obtaining one to operate VATP in Hong Kong, the SFC’s caution comes amid active promotion of its services to Hong Kong investors.
Carrying on a business of providing virtual property services, such as operating virtual property Exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities and other financial instruments. Typically, an exchange is accessed through a digital platform or sometimes at a physical address where investors organize to trade. Among the exchange’s main responsibilities will be to uphold honest and fair-trade practices. These are important to ensure that the distribution of security rates supported on that exchange is effective
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities and other financial instruments. Typically, an exchange is accessed through a digital platform or sometimes at a physical address where investors organize to trade. Among the exchange’s main responsibilities will be to uphold honest and fair-trade practices. These are important to ensure that the distribution of security rates supported on that exchange is effective
Read this termWithout a proper license it is a violation of antitrust lawsIllegal moneylenders
Illegal moneylenders
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and make the proceeds of criminal behavior appear to have been obtained from a legitimate source. Money laundering is a problem that crosses numerous industries and sectors, including the financial services space. Although criminal money can be successfully laundered without the assistance of the financial sector, billions of dollars are criminally laundered.
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and make the proceeds of criminal behavior appear to have been obtained from a legitimate source. Money laundering is a problem that crosses numerous industries and sectors, including the financial services space. Although criminal money can be successfully laundered without the assistance of the financial sector, billions of dollars are criminally laundered.
Read this term and the Counter-Terrorist Financing Ordinance. Furthermore, it is considered illegal to actively market such services to Hong Kong investors without authorization.
As a result, the SFC has taken decisive action by listing MEXC and its website on the Suspicious Virtual Asset Trading Platform Alert List until March 15, 2024.
The Hong Kong SFC issued another warning today, warning the public to be wary of the MEXC unlicensed virtual asset trading platform and saying that MEXC is actively promoting its services to Hong Kong investors. Yesterday, the SFC placed Bybit on the warning list.…
— Wu Blockchain (@WuBlockchain) 15 March 2024
The SFC advises caution amid rising virtual asset risks
The SFC’s warning highlights the risks associated with trading virtual assets on unregulated platforms. Investors are cautioned that in the absence of regulatory oversight, they face significant vulnerabilities, including the potential loss of their entire investment. Incidents such as operational cessation, collapse, hacking or misappropriation of assets can result in substantial financial losses to investors.
Earlier, the SFC had cautioned investors against ByBit and its offerings due to the cryptocurrency exchange’s unlicensed nature. Specifically, 11 of ByBit’s products have been flagged as questionable investments, including futures contracts, options and leveraged tokens.
In light of these concerns, the SFC urges investors to remain vigilant and refrain from engaging with unlicensed VATPs. For those unsure of VATP’s licensing status, the SFC directs them to consult the list of licensed virtual asset trading platforms for verification and protection.
The Securities and Futures Commission (SFC) has warned the public about an alleged virtual asset trading platform (VATP) operating under the name “MEXC”.
While MEXC does not hold a license from the SFC or have initiated the process of obtaining one to operate VATP in Hong Kong, the SFC’s caution comes amid active promotion of its services to Hong Kong investors.
Carrying on a business of providing virtual property services, such as operating virtual property Exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities and other financial instruments. Typically, an exchange is accessed through a digital platform or sometimes at a physical address where investors organize to trade. Among the exchange’s main responsibilities will be to uphold honest and fair-trade practices. These are important to ensure that the distribution of security rates supported on that exchange is effective
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities and other financial instruments. Typically, an exchange is accessed through a digital platform or sometimes at a physical address where investors organize to trade. Among the exchange’s main responsibilities will be to uphold honest and fair-trade practices. These are important to ensure that the distribution of security rates supported on that exchange is effective
Read this termWithout a proper license it is a violation of antitrust lawsIllegal moneylenders
Illegal moneylenders
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and make the proceeds of criminal behavior appear to have been obtained from a legitimate source. Money laundering is a problem that crosses numerous industries and sectors, including the financial services space. Although criminal money can be successfully laundered without the assistance of the financial sector, billions of dollars worth of criminally obtained money is laundered.
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and make the proceeds of criminal behavior appear to have been obtained from a legitimate source. Money laundering is a problem that crosses numerous industries and sectors, including the financial services space. Although criminal money can be successfully laundered without the assistance of the financial sector, billions of dollars worth of criminally obtained money is laundered.
Read this term and the Counter-Terrorist Financing Ordinance. Furthermore, it is considered illegal to actively market such services to Hong Kong investors without authorization.
As a result, the SFC has taken decisive action by listing MEXC and its website on the Suspicious Virtual Asset Trading Platform Alert List until March 15, 2024.
The Hong Kong SFC issued another warning today, warning the public to be wary of the MEXC unlicensed virtual asset trading platform and saying that MEXC is actively promoting its services to Hong Kong investors. Yesterday, the SFC placed Bybit on the warning list.…
— Wu Blockchain (@WuBlockchain) 15 March 2024
The SFC advises caution amid rising virtual asset risks
The SFC’s warning highlights the risks associated with trading virtual assets on unregulated platforms. Investors are cautioned that in the absence of regulatory oversight, they face significant vulnerabilities, including the potential loss of their entire investment. Incidents such as operational cessation, collapse, hacking or misappropriation of assets can result in substantial financial losses to investors.
Earlier, the SFC had cautioned investors against ByBit and its offerings due to the cryptocurrency exchange’s unlicensed nature. Specifically, 11 of ByBit’s products have been flagged as questionable investments, including futures contracts, options and leveraged tokens.
In light of these concerns, the SFC urges investors to remain vigilant and refrain from engaging with unlicensed VATPs. For those unsure of VATP’s licensing status, the SFC directs them to consult the list of licensed virtual asset trading platforms for verification and protection.