Concerns Rise Over MEXC’s Unlicensed Operations in Multiple Countries

Crypto exchange MEXC appealed against license revocation in Estonia
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MEXC, a crypto exchange, is under scrutiny for offering services without proper licenses in various jurisdictions, including Canada and Australia, where market authorities have issued warnings against the platform’s illegal operations. The U.S. has also restricted MEXC’s activities, with the Financial Crimes Enforcement Network (FinCEN) denying permission due to compliance failures. Yet, insider reports suggest that MEXC continues to operate in the US market despite these bans.

An insider recently left a detailed comment on the MEXC profile on PayRate42. The points made therein coincide with the findings of the FinTelegram investigation of this crypto exchange. PayRate42 has MEXC on its red compliance list due to regulatory issues.

Read our MEXC reports here on FinTelegram.

The lack of licensing and authorization has not been limited to these countries. MEXC has been known to offer futures trading with up to 200x leverage and other services internationally without the necessary regulatory approvals. This approach has prompted investigations and public warnings from financial regulatory bodies across the globe, including Germany’s BaFin, the Austrian FMA, Belgium’s FSMA, as well as authorities in Quebec, Japan, Malaysia, Hong Kong, and Canada.

These regulatory bodies have made their concerns and warnings about MEXC‘s illegal activities available on their official websites, highlighting the widespread nature of the issue. Notably, MEXC has faced significant regulatory actions, including the revocation of its license in Seychelles and the loss of its Estonian license—although the latter is currently under appeal.

MEXC‘s operational practices further complicate the situation. The platform reportedly advises its clients to use virtual private networks (VPNs) and to transact exclusively in cryptocurrencies. This advice is seen as an attempt to circumvent national laws and regulations, avoiding the need to apply for operating licenses in various countries. Moreover, the absence of Know Your Customer (KYC) checks raises concerns about the potential for MEXC to be involved in scams and other fraudulent activities, posing a significant threat to public order and the integrity of the global financial system.

The collective actions and alerts from international market authorities signal a growing consensus about the risks associated with unregulated firms like MEXC. As the cryptocurrency market continues to evolve, the enforcement of regulations and the protection of investors remain paramount to ensuring its legitimacy and safety.

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


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