Although the cryptocurrency market has shown great growth in recent years, it also carries many risks for investors. To reduce these risks and protect investors, regulators are increasing inspections and regulations on cryptocurrency exchanges. In this context, the Hong Kong Securities Corporation (SFC) announced on Friday, March 15 that it added MEXC, one of the leading exchanges in the cryptocurrency market, to the list of “suspicious” exchanges.
Cryptocurrency exchange on suspect list in Hong Kong
Hong Kong Securities and Futures Commission (SFC) announced on Friday, March 15 that it added MEXC, one of the leading exchanges in the cryptocurrency market, to the list of “suspicious” exchanges. This development was interpreted as an indicator of increasing regulations and inspections on Bitcoin and altcoin exchanges in Hong Kong.
In an update made on March 14, SFC also warned the Bybit exchange on the grounds that it was operating without a license. The subsequent MEXC move shows that the SFC is starting to take a tougher stance on cryptocurrency exchanges.
SFC made a statement
In its statement, the SFC emphasized that it will not hesitate to impose sanctions against exchanges operating without a license and will initiate legal proceedings against these platforms when deemed appropriate. This indicates that all BTC and altcoin exchanges operating in Hong Kong are required to obtain a license. It also makes it clear that they have to comply with the regulations.
Hong Kong took a step to regulate the crypto market in June last year and required cryptocurrency companies to obtain a license to operate in the region. While many companies have applied for a license since this date, some stock exchanges have not been granted a license. Adding MEXC to the list of “doubtful” exchanges could make it difficult for the exchange to operate in Hong Kong and negatively impact investor interest. It is a matter of curiosity how MEXC will react to this situation and whether it will take the necessary steps to obtain a license.
A warning also came from Germany
cryptokoin.com As we reported, in October last year, Germany’s financial markets regulator BaFin also warned MEXC on the grounds that it was operating without authorization and legal registration. The crypto market has grown rapidly in recent years and has begun to attract the attention of investors. This led to the emergence of many new exchanges and jeopardized the security of investors. Regulators’ increased supervision and regulation of crypto exchanges is considered an important step to reduce these risks and protect investors.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.