Attention: Crypto Exchange MEXC Downgraded To Red Compliance Status!

FinTelegram downgraded crypto exchange MEXC to Red Compliance
Spread financial intelligence

The Estonian entity MEXC Estonia OÜ holds a crypto license issued by the Estonian FIU. The entity operates as a payment agent and distributor for the crypto exchange MEXC. FinTelegram recently reported the warning issued by Austrian FMA against the crypto exchange MEXC. In October 2023, the German BaFin also issued a warning. Due to the regulatory warnings and other issues, we downgraded MEXC to our Red Compliance list. Here is the update.

MEXC Key data

Trading namesMEXC, MEXC Global
MEXC Ventures
Business activityCrypto exchange
Social mediaLinkedIn, X, Instagram, Youtube
Legal entityMXC Technology Pte. Ltd.
MEXC Estonia OÜ
MX Global Ltd
Contact data[email protected]
[email protected]
England (User Agreement)
Related individualsJohn Chen (LinkedIn)
Yichen Peng
Ljudmila Budnikova
AuthorizationEstonian FIU crypto license
Payment optionsCrypto, Credit/debit card
Payment processorsMoonPay, Banxa, Simplex
Trustpilot2.2-star rating with a “Poor” trust level
Compliance ratingRed
WarningsBaFin, FMA

Short MEXC Narrative

MEXC was founded in 2018 in the Seychelles by Singapore-based John Cheng, who is also the CEO of the crypto exchange.

In Europe, MEXC FIAT deposits are processed via MEXC Estonia OÜ, established in Estonia in 2019 with a license from the Estonian FIU. Yichen Peng is registered as the beneficial owner and director in the Estonian entity.

Being the payment agent for MEXC, using an almost identical logo and sharing resources certainly qualifies MEXC Estonia as part of the MEXC scheme.

Besides being the payment agent for MEXC, MEXC Estonia also operates the website MEXCeu.com. Anyone who registers there will receive a confirmation message from the MEXC crypto exchange. It should be noted at this point that MEXCeu.com is a terrible crypto exchange that we advise against.

MEXC Payment Processors

MEXC Estonia acting as payment agent

Customers can buy cryptocurrencies from MEXC via credit/debit cards and through bank transfers. MEXC Estonia acts as a payment agent. The purchase can be made directly at MEXC or via a third-party partner such as MoonPay, Simplex, or Banxa. Third-party transactions are also processed via MEXC Estonia.

MEXC does not require new clients to go through a KYC procedure at MEXC when buying cryptos. It was possible to deposit up to €8,000 per transaction via fiat (credit/debit and bank wire) without a KYC check. Unlimited amounts can also be deposited via crypto without a KYC check.

On the MEXC.com website, MEXC Estonia is also referred to as the distribution partner responsible for processing the purchase of cryptocurrencies via credit/debit card or bank transfer.

This Service of Credit Card Purchase of Digital Currencies (hereinafter as ‘Service’) is provided to you by the third-party platform Banxa and distributed to you via MEXC Estonia OU: www.mexceu.com (hereinafter as ‘Distributor’). To use this Service, you must agree to user agreements and/or other terms and conditions that might be available on the Distributor and/or Banxa platform.

MEXC Statement regarding MEXC Estonia

MEXC Compliance Check

It should first be noted that there are already two regulatory warnings in the EEA against MEXC. It should also be noted that the User Agreement does not specify the legal entity with which the users enter into their relationship. These are red flags.

Lawyer explain the relationship between MEXC and MX Global Ltd

In our initial review in September 2023, we have found that MEXC has a valid license from FIU Estonia to operate in Europe as a crypto company.

However, MEXC Estonia‘s lawyers sent a letter to FinTelegram, claiming that MEXC Estonia would not be part of the MEXC scheme and would not be connected. In view of the results of our updated review, we cannot understand this claim. However, if this were true, then MEXC would not have a license in the EEA at all.

In light of the latest information and the unclear regulatory situation, we are downgrading MEXC to our Red Compliance List.

Share information

If you have any information about MEXC, its operators, and its facilitators, please share it through our whistleblower system, Whistle42.

Leave a Reply

Your email address will not be published. Required fields are marked *