Authorities in Hong Kong have sounded a public alert over a suspected crypto asset-related fraud linked with a supposed trading platform “MEXC.” According to a joint statement by the Securities and Futures Commission (SFC) and the Police on Monday, the public is cautioned against scam activities operated by MEXC, which promised them free tips on how to invest and mint hefty returns.
Once engaged, the victims were directed to MEXC-managed websites, and on further inquiry, they were encouraged to deposit their money into the provided bank accounts for investment purposes. However, when many tried to withdraw their money, they were met with problems, and this raised questions about fraudulent activities.
In view of this development, the SFC has swiftly included MEXC and related websites on the list of suspicious virtual asset trading platforms, which was updated on February 9, 2024. Public caution is to be exercised not to transfer monies or engage in such other fraudulent activities that may emerge using other domain names, even though the MEXC websites have been blocked by law enforcement agencies.
Deadline Approaches for Crypto Trading Platforms
This warning comes after increased regulatory attention in the virtual asset trading space in Hong Kong. SFC recently restated its March 1 deadline for submission of applications by the crypto trading platforms and underlines that crypto asset trading may only be conducted on SFC-licensed platforms. Investors are reminded to check the regulatory status of trading platforms by referring to the Lists of virtual asset trading platforms.
Investors need to be particularly vigilant and cautious, given that the deadline for the phase-out of the unlicensed platforms is on May 31, 2024. If investors have dealings with unlicensed or unlicensed applicants, they are urged to take preventive actions, such as the closure of accounts or withdrawal of assets from these services.
Nonetheless, the list of applicants’ platforms is still subject to regulatory scrutiny, and trading on these platforms carries its own set of risks. In this regard, the SFC particularly makes the point that trading in virtual assets should only be carried out on a licensed platform to mitigate the risks of fraud and provide protection to investors. The authorities would continue the battle against fraud activities in the virtual asset space, and investors would be advised to take cautious steps and put security first in the course of their engagements in digital asset transactions.
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