Phemex is a crypto derivatives exchange founded in 2019 in Singapore by Jack Tao, a former executive from Morgan Stanley. The platform has grown to become one of the top 10 global exchanges in 2022, with a daily peak trading volume of more than $12 billion. While Phemex claims to be a regulated exchange with the highest value on regulatory compliance, the Canadian regulator OSC is currently taking action against Phemex. We have reviewed Phemex and placed it on our Orange Compliance list.
Phemex Key Data
| Trading name | Phemex |
| Business activity | Crypto exchange |
| Domain | https://phemex.com |
| Legal entities | Phemex Limited (BVI) Phemex Technology Pte. Ltd. (Singapore) Phemex Lithuania UAB |
| Jurisdictions | BVI, Singapore, Lithuania |
| Related individuals | Jack Tao |
| Authorization | MSB registration with FinCEN (US) |
| Partners | Legend Trading (FIAT) |
| Warnings | FCA (2021), OSC (2023) |
| Compliance rating | Orange Compliance |
Short Phemex Narrative
Phemex is one of the many crypto exchanges. Besides trading cryptos, it offers an interest-bearing crypto savings (earning) account where interest is paid daily.
As of September 2023, the Phemex website has received nearly 1.3 million visitors. Most of them, almost 19%, come from the U.S., followed by India and Spain. The UK is also among the top 5 visitor countries (see screenshot left).
Compliance Check
In 2021, the UK Financial Conduct Authority (FCA) issued a warning against Phemex, stating that the company did not have authorization to operate in the UK.
In September 2023, the Canadian regulator, the Ontario Securities Commission (OSC), initiated proceedings against Phemex Limited and Phemex Technology Pte. Ltd. to address their alleged non-compliance with Ontario’s securities regulations. This move also serves as a warning to crypto trading platforms that violations of Ontario’s securities laws will not go unnoticed or unaddressed, the OSC said in the Statement of Allegations.
Although Phemex holds no license in the UK or the ESMA jurisdictions, we could register with Phemex as EEA and UK Residents in our review (Oct 14, 2023) without problems. Deposits in crypto were possible in unlimited amounts even before the KYC check was performed. At that point, not even our email address was verified.
Deposits via FIAT, on the other hand, are only possible after a KYC check has been carried out.
Deposits via FIAT, on the other hand, are only possible after a KYC check has been carried out. The video verification via Jumio was done in 2 minutes, and we could buy credit/debit card cryptos. The crypto purchase in the EEA region is processed via Phemex Lithuania UAB.
Due to existing warnings from regulators and the unclear regulatory situation, we have placed Phemex on our Orange Compliance List and advise customers to exercise caution.
Share Information
If you have any information about Phemex, its activities, or its partners, please let us know through our whistleblower system, Whistle42.
