Hong Kong’s Securities and Futures Fee (SFC) and native regulation enforcement have collectively issued a public warning in opposition to an entity impersonating cryptocurrency alternate MEXC International.
Scammers are reportedly posing as respectable digital asset buying and selling platforms (VATPs) to lure unsuspecting victims into what seems to be a cryptocurrency funding rip-off.
The listing of blocked net domains included within the alert exhibits that scammers are utilizing hyperlinks whose addresses start with “mexc” and finish with random letters, just like phishing hyperlinks.
At press time, MEXC International’s precise web site was not listed.
Rip-off warning
Primarily based on intelligence shared between the SFC and the police underneath a joint working group targeted on monitoring and investigating unlawful actions within the area of digital property, the SFC added MEXC and its associated web sites to the alert listing of suspicious digital asset buying and selling platforms on February 9.
Victims had been reportedly launched to social media or instantaneous messaging discussion groups underneath the guise of receiving free funding recommendation, solely to be directed to web sites operated by MEXC to make cryptocurrency purchases. The people had been then prompted to deposit funds into particular financial institution accounts for funding, however then encountered difficulties in withdrawing the funds.
Hong Kong police have taken steps to dam entry to web sites operated by MEXC. Nevertheless, there are ongoing issues that MEXC could proceed to create new web sites with related domains to proceed its fraudulent scheme. The general public is urged to train warning and stay vigilant in opposition to such misleading practices.
The SFC has issued repeated warnings stressing the significance of due diligence and the necessity for buyers to be cautious of funding alternatives which can be “too good to be true”, particularly these promoted by social media platforms and messaging apps. .
Regulators say fraudulent, unlicensed platforms usually use names just like respectable entities to mislead buyers. The general public is suggested to confirm the legitimacy of digital asset buying and selling platforms earlier than partaking in any funding actions to protect in opposition to potential fraud.
Regulatory suppression
The warning in opposition to MEXC follows a broader regulatory crackdown on unlicensed cryptocurrency companies in Hong Kong following the introduction of a regulatory framework for cryptocurrency alternate licensing final 12 months.
The Securities and Futures Fee lately reminded entities engaged in cryptocurrency buying and selling companies to use for a license by February 29 or stop operations by Might 31. To this point, Hong Kong has issued licenses underneath the brand new framework to 2 platforms, HashKey and OSL.
As well as, the Hong Kong authorities have launched a public session on legislative proposals geared toward implementing a complete licensing regime for over-the-counter digital asset buying and selling service suppliers.
The measure seeks to implement licensing necessities for entities offering spot buying and selling companies for digital property and proposes to broaden the regulatory scope of the Commissioner of Customs and Excise (CCE) to cowl all over-the-counter digital asset companies. This consists of monitoring licensees’ compliance with anti-money laundering and counter-terrorism financing requirements.
