“Binance Style” Crypto Exchange MEXC Secures Another Regulatory Warning Issued by Spanish CNMV!

Crypto exchange MEXC appealed against license revocation in Estonia
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FinTelegram has already issued several warnings against the crypto exchange MEXC, which is apparently operated by Asians, and has shown how this “Binance-style” crypto exchange operates globally without regulatory permission with millions of customers. Recently, the Spanish CNMV also issued a warning after the German BaFin, the Austrian FMA, the UK FCA and other regulators had already issued warnings. FinTelegram has placed MEXC on the Red Compliance List.

Latest MEXC Updates

MEXC, which routes its operations through Lithuania, has emerged as one of the world’s leading crypto exchanges, boasting over 17 million website visitors monthly—surpassing even that of established regulated exchanges like Kraken or Bitpanda.

Notably, the exchange has drawn regulatory attention and warnings, including a recent admonition from the Spanish CNMV, Hong Kong’s Securities and Futures Commission (SFC), and a warning from the UK FCA. Analysis from Similarweb highlights Russia as the primary source of MEXC‘s web traffic, with Turkey, the UK, and the U.S. also contributing significantly to its user base.

A Binance-Style Crypto Exchange

Like Binance, MEXC moves across all jurisdictions via hidden legal entities and has no known headquarters. According to information provided by whistleblowers, the US authorities are also investigating MEXC for possible sanctions violations and money laundering. In fact, the latest Similarweb analysis shows that a significant proportion of MEXC‘s customers come from the US and from Russia.

The Estonian-Lithuanian Compliance Question

Another regulatory warning against the crypto exchange MEXC

Further complicating its operational landscape, MEXC Estonia OÜ faced the revocation of its crypto license in Estonia, a decision currently under appeal in the Estonian courts. This regulatory setback underscores the broader issues of compliance and legality confronting the exchange.

As a payment processor for bank transfers, MEXC currently works with Paytend, which is regulated as an e-money institution in Lithuania. As with credit and debit card deposits from customers, bank transfers are also processed via MEXC Estonia OÜ, which is registered in Estonia.

As is often the case, we wonder how a regulated financial services provider can do business with crypto providers when they have received numerous regulatory warnings. There seems to be a need for action by the Bank of Lithuania as the responsible regulatory authority.

Compliance Rating

Our examination failed to pinpoint the legal entity with which users enter into agreements. MEXC‘s terms of service ambiguously state that the User Agreement is “concluded between you (‘You’ or ‘User’) and MEXC Trading Platform,” without providing clear jurisdictional details. This lack of transparency raises significant concerns regarding the legal protections afforded to users and the regulatory obligations of the platform.

Given these circumstances and the recent red flag issued by the Spanish CNMV, FinTelegram strongly advises against utilizing the MEXC platform. The array of uncertainties and risks associated with its operation suggests that it may only be a matter of time before law enforcement and regulatory bodies intensify their scrutiny of MEXC.

MEXC Key data

Trading namesMEXC, MEXC Global
MEXC Ventures
Business activityCrypto exchange
Social mediaLinkedIn, X, Instagram, Youtube
Legal entitiesMXC Technology Pte. Ltd.
MEXC Global Ltd
MEXC Estonia OÜ
MEXC Lithuania, UAB
MX Global Ltd
Contact data[email protected]
[email protected]
England (User Agreement)
Related individualsJohn Chen (LinkedIn) a/k/a
John Chen Ju
Yichen Peng
Ljudmila Budnikova
AuthorizationEstonian FIU crypto license
Payment optionsCrypto, Credit/debit card
Payment processorsMoonPay, Banxa,
Simplex, Paytend
Trustpilot1.9-star rating with a “Poor” trust level
Compliance ratingRed
WarningsBaFin, FMA, BCSC, SFC, FCA, CNMV

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If you have any information about MEXC, its operators, and its activities, please let us know via our whistleblowing system, Whistle42.

CategoriesCrypto Schemes

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