The Securities and Futures Commission (SFC) of Hong Kong has recently alerted the cryptocurrency exchange MEXC about its operations within the region without an official license. The SFC highlighted the significance of adherence to regulatory standards for exchanges and is prepared to impose sanctions on those which fail to comply. This warning comes after Hong Kong began welcoming license applications from cryptocurrency businesses since mid-year.
Stringent Measures Against Unlicensed Crypto Exchanges
In a recent email announcement, the SFC made it clear that MEXC lacks the required license for conducting its business in Hong Kong. The regulator reiterated its commitment to uphold the regulatory framework within the cryptocurrency landscape and take necessary actions against unauthorized exchanges.
The Hong Kong SFC’s strict stance is not a new hurdle for MEXC; the platform had previously received warnings from financial regulators in Japan and Germany for similar license violations.
Regulatory Pressure Increases on Crypto Firms
The SFC’s current warning to MEXC follows a similar alert directed at another prominent exchange, Bybit, just one day earlier. This back-to-back regulatory action highlights the intensified efforts by Hong Kong authorities to establish a robust regulatory regime for the cryptocurrency sector.
Hong Kong initiated consultations for industry regulation last year and enacted a mandatory licensing requirement for crypto businesses starting June 1, 2023. This policy marks a pivotal move towards formalizing the oversight of the crypto market and ensuring investor trust.