Hong Kong Securities and Futures Commission warns of alleged crypto scam
Hong Kong’s Securities and Futures Commission (SFC) has issued a warning regarding an alleged scam involving the crypto exchange MEXC. The SFC stated that on February 9, the police alerted the public about an organization posing as a virtual asset trading platform (VATP) under the name MEXC. As a result, the SFC has included MEXC and its websites in its alert list for suspicious virtual asset trading platforms, with the police taking action to block these websites.
Joint effort to combat illegal VAT activity
The SFC and the police have formed a joint working group to share intelligence and investigate illegal VAT activity. The regulator suspects that MEXC enticed victims by offering free investment advice through social media or instant messaging chat groups. These victims were then directed to MEXC-operated websites and asked to deposit funds into designated bank accounts for investment purposes, but they encountered difficulties when attempting to withdraw their funds.
Deadline for unregistered exchanges
The SFC had previously warned unregistered cryptocurrency exchanges in Hong Kong to apply for licenses by February 29 or cease operations by May 31. Last year, Hong Kong introduced a licensing framework for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. Currently, HashKey and OSL are the only licensed platforms in the city-state, although the SFC is carefully reviewing applications from 14 other crypto companies.
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