Hong Kong authorities issue public alert about fraudulent crypto exchange masquerading as MEXC Global

Hong Kong’s Securities and Futures Commission (SFC) and native law enforcement possess jointly issued a public warning in opposition to an entity masquerading as crypto alternate MEXC World.

The scammers are reportedly pretending to be a decent digital asset trading platform (VATP) and luring unsuspecting victims into collaborating in what appears to be a crypto investment scam.

The list of blocked internet domains integrated within the alert exhibits the scammers are using links with addresses that commence with “mexc” and pause in random alphabets the same to phishing links.

MEXC World’s staunch internet internet page doesn’t seem within the list as of press time.

Fraud warning

The SFC has placed MEXC and its associated websites on the Suspicious Virtual Asset Buying and selling Platforms Alert List as of Feb. 9, following intelligence shared between the SFC and the police below a joint working neighborhood inquisitive about monitoring and investigating unlawful activities within the digital asset home.

Victims were reportedly drawn into social media or fast messaging chat groups below the guise of receiving free investment suggestion, simplest to be directed to MEXC-operated websites for crypto purchases. Attributable to this truth, these other folks were ended in to deposit funds into particular bank accounts for investment capabilities, facing difficulties when making an strive to withdraw their funds later.

The Hong Kong Police possess taken steps to block salvage admission to to websites operated by MEXC. Alternatively, there would possibly be an ongoing explain that MEXC would possibly well well just continue to compose new websites with the same domains to perpetuate their flawed plot. The public is recommended to exercise caution and live vigilant in opposition to such fraudulent practices.

The SFC’s repeated warnings emphasize the importance of due diligence and the need for traders to be cautious of “too-precise-to-be-precise” investment opportunities, especially those promoted by technique of social media platforms and fast messaging apps.

The regulatory body acknowledged that flawed, unlicensed platforms in general undertake names equivalent to decent entities to mislead traders. The public is recommended to have a examine the legitimacy of digital asset trading platforms earlier than enticing in any investment activities to safeguard in opposition to doable fraud.

Regulatory crackdown

The warning in opposition to MEXC comes amidst a broader regulatory crackdown on unlicensed crypto operations in Hong Kong following the introduction of a regulatory framework for licensing crypto exchanges final 365 days.

The SFC recently reminded entities engaged in crypto alternate products and services to follow for licenses by Feb. 29 or conclude operations by May per chance per chance also 31. To this point, Hong Kong has issued licenses to 2 platforms below the new framework — HashKey and OSL.

Additionally, Hong Kong authorities possess launched a public session on legislative proposals geared toward imposing a entire licensing regime for services of over-the-counter digital asset trading products and services.

This initiative seeks to mandate licensing necessities for entities providing utter trading products and services for digital sources and proposes extending the oversight of the Commissioner of Customs and Excise (CCE) to embody everywhere-the-counter digital asset products and services. This involves monitoring licensees’ compliance with anti-money laundering and anti-terrorist financing standards.