The Securities and Futures Commission (SFC) has issued a warning
to the public regarding a purported virtual asset trading platform (VATP)
operating under the name “MEXC.”
The SFC’s caution comes amidst the active promotion of its
services to Hong Kong investors, despite MEXC neither holding a license from
the SFC nor initiating the process to obtain one for operating a VATP in Hong
Kong.
Operating a business of providing virtual asset services,
such as running a virtual asset exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term, without proper licensing is a
violation of the Anti-Money Laundering
Money Laundering
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Read this Term and Counter-Terrorist Financing
Ordinance. Furthermore, actively marketing such services to Hong Kong investors
without authorization is considered unlawful.
As a result, the SFC has taken decisive action by listing
MEXC and its website on the Suspicious Virtual Asset Trading Platforms Alert
List as of March 15, 2024.
The Hong Kong SFC issued another warning today, warning the public to beware of the MEXC unlicensed virtual asset trading platform, and stated that MEXC has been actively promoting its services to Hong Kong investors. Yesterday, the SFC placed Bybit on the warning list.…
— Wu Blockchain (@WuBlockchain) March 15, 2024
SFC Advises Caution amidst Growing Virtual Asset Risks
The SFC’s warning underscores 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. Instances such as
operational cessation, collapse, hacking, or misappropriation of assets can
leave investors exposed to substantial financial harm.
Earlier, the SFC
cautioned investors against Bybit and its offerings due to the
cryptocurrency exchange’s lack of licensing. Specifically, 11 of Bybit’s
products have been flagged as suspicious investments, including futures
contracts, options, and leveraged tokens.
In light of these concerns, the SFC urges investors to
exercise vigilance and refrain from engaging with unlicensed VATPs. For those
uncertain about the licensing status of a VATP, the SFC directs them to consult
its List of licensed virtual asset trading platforms for verification and
protection.
The Securities and Futures Commission (SFC) has issued a warning
to the public regarding a purported virtual asset trading platform (VATP)
operating under the name “MEXC.”
The SFC’s caution comes amidst the active promotion of its
services to Hong Kong investors, despite MEXC neither holding a license from
the SFC nor initiating the process to obtain one for operating a VATP in Hong
Kong.
Operating a business of providing virtual asset services,
such as running a virtual asset exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term, without proper licensing is a
violation of the Anti-Money Laundering
Money Laundering
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Read this Term and Counter-Terrorist Financing
Ordinance. Furthermore, actively marketing such services to Hong Kong investors
without authorization is considered unlawful.
As a result, the SFC has taken decisive action by listing
MEXC and its website on the Suspicious Virtual Asset Trading Platforms Alert
List as of March 15, 2024.
The Hong Kong SFC issued another warning today, warning the public to beware of the MEXC unlicensed virtual asset trading platform, and stated that MEXC has been actively promoting its services to Hong Kong investors. Yesterday, the SFC placed Bybit on the warning list.…
— Wu Blockchain (@WuBlockchain) March 15, 2024
SFC Advises Caution amidst Growing Virtual Asset Risks
The SFC’s warning underscores 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. Instances such as
operational cessation, collapse, hacking, or misappropriation of assets can
leave investors exposed to substantial financial harm.
Earlier, the SFC
cautioned investors against Bybit and its offerings due to the
cryptocurrency exchange’s lack of licensing. Specifically, 11 of Bybit’s
products have been flagged as suspicious investments, including futures
contracts, options, and leveraged tokens.
In light of these concerns, the SFC urges investors to
exercise vigilance and refrain from engaging with unlicensed VATPs. For those
uncertain about the licensing status of a VATP, the SFC directs them to consult
its List of licensed virtual asset trading platforms for verification and
protection.