Hong Kong’s SFC Flags Bybit and MEXC in Crackdown on Unlicensed Crypto Activities
by Fintech News Hong Kong March 18, 2024The Securities and Futures Commission (SFC) of Hong Kong has issued warnings about two unlicensed virtual asset trading platforms, Bybit and MEXC, advising the public to exercise caution.
These platforms have been providing trading services in various crypto-related products without obtaining the necessary licenses or registrations from the SFC.
Bybit’s range of offerings includes futures contracts, options, leveraged tokens, and several types of investment schemes targeting investors in Hong Kong and other jurisdictions.
MEXC has also been actively promoting its services to Hong Kong investors without SFC’s authorisation. The SFC has underscored that dealing with or marketing such products in Hong Kong or to its residents without a license constitutes a criminal offense under the city’s regulations.
The commission has placed both Bybit and MEXC on its Suspicious Virtual Asset Trading Platforms Alert List on 14th and 15th March 2024, respectively.
This move highlights the SFC’s concerns over the risks associated with unregulated platforms, including potential investment losses due to operational failures, hacks, or asset misappropriation.
Investors are cautioned against placing funds with unlicensed entities as seeking legal recourse may prove challenging, especially if these platforms have no legal presence in Hong Kong.
Featured image credit: Edited from Freepik
