Hong Kong’s Securities and Futures Fee (SFC) and native legislation enforcement have collectively issued a public warning in opposition to an entity masquerading as crypto alternate MEXC Global.
The scammers are reportedly pretending to be a reliable digital asset buying and selling platform (VATP) and luring unsuspecting victims into taking part in what seems to be a crypto funding rip-off.
The listing of blocked web domains included within the alert reveals the scammers are utilizing hyperlinks with addresses that begin with “mexc” and finish in random alphabets akin to phishing hyperlinks.
MEXC World’s precise web site doesn’t seem within the listing as of press time.
Fraud warning
The SFC has positioned MEXC and its related web sites on the Suspicious Digital Asset Trading Platforms Alert Listing as of Feb. 9, following intelligence shared between the SFC and the police beneath a joint working group centered on monitoring and investigating unlawful actions within the digital asset house.
Victims had been reportedly drawn into social media or instantaneous messaging discussion groups beneath the guise of receiving free funding recommendation, solely to be directed to MEXC-operated web sites for crypto purchases. Subsequently, these people had been prompted to deposit funds into particular financial institution accounts for funding functions, dealing with difficulties when making an attempt to withdraw their funds later.
The Hong Kong Police have taken steps to dam entry to web sites operated by MEXC. Nonetheless, there’s an ongoing concern that MEXC might proceed to create new web sites with related domains to perpetuate their fraudulent scheme. The general public is urged to train warning and stay vigilant in opposition to such misleading practices.
The SFC’s repeated warnings emphasize the significance of due diligence and the necessity for traders to be cautious of “too-good-to-be-true” funding alternatives, particularly these promoted via social media platforms and instantaneous messaging apps.
The regulatory physique stated that fraudulent, unlicensed platforms usually undertake names just like reliable entities to mislead traders. The general public is suggested to confirm the legitimacy of digital asset buying and selling platforms earlier than partaking in any funding actions to safeguard in opposition to potential 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 12 months.
The SFC not too long ago reminded entities engaged in crypto alternate companies to use for licenses by Feb. 29 or stop operations by Could 31. So far, Hong Kong has issued licenses to 2 platforms beneath the brand new framework — HashKey and OSL.
Moreover, Hong Kong authorities have launched a public session on legislative proposals geared toward implementing a complete licensing regime for suppliers of over-the-counter digital asset buying and selling companies.
This initiative seeks to mandate licensing necessities for entities providing spot buying and selling companies for digital belongings and proposes extending the oversight of the Commissioner of Customs and Excise (CCE) to embody all over-the-counter digital asset companies. This consists of monitoring licensees’ compliance with anti-money laundering and anti-terrorist financing requirements.
