Hong Kong Securities and Futures Commission (SFC) issued a warning about leading cryptocurrency exchange MEXC operating in the region without a license. SFC emphasized the importance of crypto exchanges complying with regulations, demonstrating its determination to enforce sanctions against unlicensed crypto platforms. This warning follows the region’s acceptance of license applications from crypto companies since June of the previous year.
SFC’s Licensing Alert for MEXC
SFC, in an announcement made via email today, underlined that MEXC does not have the necessary license to operate in Hong Kong, pointing to the regulatory scrutiny on unauthorized cryptocurrency exchanges.
The Hong Kong regulator stated that it is ready to take appropriate enforcement measures against crypto platforms found to be operating without the proper license, in line with efforts to maintain regulatory standards in the cryptocurrency sector.
This is not the first instance of regulatory non-compliance for MEXC, as authorities in other jurisdictions have previously issued warnings. Notably, Japan’s Financial Services Commission and Germany’s Federal Financial Supervisory Authority had also issued similar warnings about MEXC operating without a license.
Similar Warning Issued for Bybit Exchange
The warning issued by the SFC regarding MEXC represents the second regulatory alert this week in Hong Kong’s ongoing efforts to create a comprehensive regulatory framework for the crypto industry. Just a day earlier, the regulatory body had targeted another leading cryptocurrency exchange, Bybit, warning that the cryptocurrency exchange was operating in the region without a license.
Hong Kong’s regulatory journey for the cryptocurrency sector began last year with the initiation of consultations on regulatory rules for the industry. Starting from June 1, 2023, it became mandatory for crypto companies to obtain a license to operate within the country, marking a significant step in formalizing regulatory oversight and enhancing investor confidence in the cryptocurrency ecosystem.
