Hong Kong’s Securities and Futures Commission Warns of Alleged Crypto Fraud
Hong Kong’s Securities and Futures Commission (SFC) has issued a warning to the public about a crypto exchange called MEXC, which is allegedly engaging in fraudulent activities. The SFC stated that MEXC is posing as a legitimate crypto exchange and has been luring victims through social media and instant messaging chat groups.
MEXC’s Crypto Fraud Activities
MEXC’s fraudulent activities involve enticing victims with promises of free investment advice. Once victims join these chat groups, they are encouraged to buy cryptocurrencies on MEXC-operated websites and deposit funds into designated bank accounts for investment purposes. However, victims face difficulties when trying to withdraw their funds.
The SFC has added MEXC and its websites to its alert list due to suspicions regarding virtual asset trading platforms. The Hong Kong police have also taken measures to restrict access to MEXC websites. The SFC and the police are working together to investigate instances of illegal virtual asset trading activities.
Reminder to Be Cautious
The SFC reminds the public to be cautious about investment opportunities and advice posted on social media platforms and instant messaging apps. They also warn that fraudulent platforms often adopt names similar to legitimate entities to confuse investors.
Hong Kong’s Regulatory Framework
Last week, the SFC issued a warning to unregistered cryptocurrency exchanges, instructing them to either apply for licenses or cease operations. Hong Kong introduced a regulatory framework for licensing cryptocurrency exchanges in the previous year, granting licenses to two platforms: HashKey and OSL.
The authorities in Hong Kong have started a public consultation on legislative proposals for a licensing regime for providers of over-the-counter virtual asset trading services.
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