Hong Kong’s SFC Issues Warning on MEXC for Alleged Crypto Fraud

Hong Kong’s SFC Disorders Warning on MEXC for Alleged Crypto Fraud

Hong Kong’s Securities and Futures Price warned the final public this day of an allegedly fraudulent crypto substitute working beneath the title MEXC.

In an announcement published on its web space, the SFC notorious that the unsuitable group turned into posing as the “legit” crypto substitute with the same title.

MEXC’s Crypto Fraud

The unsuitable MEXC’s crypto fraud activities began by allegedly luring victims to social media or rapid messaging chat groups while promising to provide free funding recommendation, per the announcement.

After joining these chat groups, victims were encouraged to aquire cryptocurrencies on web pages operated by MEXC. Victims were then asked to deposit funds into designated financial institution accounts for funding functions, nonetheless after that, they reported difficulties with fund withdrawal.

The unsuitable MEXC and its web pages beget been added to the alert list of the SFC due to suspicions regarding virtual asset buying and selling platforms. The Hong Kong police beget also taken measures to restrict entry to MEXC web pages.

Currently, the SFC and the police are collaborating to half intelligence and evaluate conditions of illegal virtual asset buying and selling activities.

“The SFC once again reminds the final public to be cautious about “too-valid-to-be-valid” funding opportunities and recommendation posted on social media platforms and by plan of rapid messaging apps,” the regulator said in its announcement. “The public ought to even be acutely conscious that fraudulent, unlicensed platforms will continuously adopt names corresponding to those of legit entities to confuse merchants.”

The Hong Kong SFC

Last week, the SFC issued a warning to unregistered cryptocurrency exchanges, instructing them to both practice for licenses by February 29 or stop operations by Might perhaps well well also 31.

Hong Kong had launched a regulatory framework for licensing cryptocurrency exchanges facing virtual assets the earlier 365 days. This framework allowed for the licensing of exchanges that provide retail buying and selling products and companies.

Hong Kong has up to now granted licenses to 2 platforms, particularly HashKey and OSL.

Authorities in Hong Kong also commenced a public consultation on legislative proposals aimed at implementing a licensing regime for services of over-the-counter virtual asset buying and selling products and companies the day prior to this.

🇭🇰 Hong Kong Seeks Enter on OTC Crypto Shopping and selling Guidelines

Here’s a abstract 👇

— Cryptonews.com (@cryptonews) February 8, 2024

The consultation suggests a licensing requirement from the Commissioner of Customs and Excise (CCE) for those offering keep buying and selling products and companies for virtual assets in Hong Kong. Furthermore, it proposes extending CCE oversight to quilt in the route of-the-counter virtual asset products and companies, including monitoring licensees’ anti-money laundering and anti-terrorist financing activities.

Source : cryptonews.com