Hong Kong’s SFC Warns Public of Scam; Is MEXC Involved?  

The Securities and Future Commission (SFC) of Hong Kong alerted the public on February 09 about a fast-spreading scam involving an organization posing as a virtual asset trading platform (VATP) and performing operations under the name of MEXC. 

The SFC has included MEXC and its websites in its alert list for suspicious VATPs while the police took action to block MEXC’s website. The regulatory commission and police are collectively working to collect more and more intelligence on the issue. 

“On these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC. Victims were then asked to deposit funds into designated bank accounts for investment purposes, but after that, they reported difficulties with fund withdrawal,” said the SFC. 

As per the regulators’ claims, MEXC lured victims to join social media or instant messaging chat groups and promised to provide free investment tips in exchange. 

Earlier this month, the SFC issued a notice targeting unregistered companies, saying that the firms should apply for the licensing process by February 29 or close by May 31, 2024. 

In the past few quarters, the SFC of Hong Kong has made significant amendments to its rules for digital assets and other crypto products. If the growth continues, the region will likely become a global crypto hub. 

Following the approval of the Bitcoin spot ETF in the United States, Hong Kong has also invited the companies to file their application for the ETF under the regulators. However, Hong Kong’s neighbor banned all crypto-related activities back in 2021. 

Crypto Market Post Bitcoin Spot ETF Approval

The hype of the Bitcoin ETF has benefitted hundreds of traders and crypto moguls who traded smartly during the sudden growth of the crypto market. 

Market observers claim that the approval of the ETF has attracted a significant number of users to the industry, and the sector saw an inflow of billions of dollars in the market. 

Following the approval of BTC spot ETF nowadays, there is cutthroat competition among the companies to file for Ether spot ETF and secure early approval from the regulators.   

In the past 24 hours, the crypto market capitalization has surged over 4.12% and was $47,171 as of writing. Similarly, the crypto leader has enjoyed significant highs in the past few hours, and its price grew more than 5% in the intraday time frame. 

Solana broke the much-awaited resistance of $100, and as of writing, the token/coin was trading at $104.23, which makes it the 5th most prominent crypto in the space. 

Some analysts claim that the upcoming Bitcoin halving solely backs the present trends in the crypto market, while others believe that the skyrocketing growth is fueled by the news of Ether spot ETF and the entry of traditional finance players in the crypto industry. 

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.