Cryptocurrency exchange MEXC has reportedly launched a crackdown on unverified users suspected of being from mainland China.
According to Chinese blockchain journalist Colin Wu, citing sources within the local crypto community, MEXC has begun imposing restrictions on the accounts of mainland Chinese users who have not completed KYC (Know Your Customer) verification.
吴说获悉, 据社区反馈, MEXC 抹茶交易所近期开始大量封禁无 KYC 但被判定来自中国大陆地区的用户,被判定后将仅保留合约平仓与提币权限。早先 Bybit KuCoin 等也采取了类似的策略。https://t.co/KmtsRVYSa1
— 吴说区块链 (@wublockchain12) February 12, 2024
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While the exact reason behind this action remains unknown, affected users are only left with the option to close their trading orders and withdraw their cryptocurrencies to alternative exchanges.
As of press time, MEXC has not released any official statement on the matter.
The move comes after Hong Kong’s Securities and Futures Commission issued a warning regarding an alleged scam involving impostors attempting to imitate MEXC’s operations in the region.
The Hong Kong regulator suspects that victims were tricked into joining social media or instant messaging chat groups under the guise of receiving free investment advice. Those expressing interest in purchasing cryptocurrencies were allegedly directed to websites purportedly “operated by MEXC.”
At the time of writing, MEXC appears to be among the few exchanges that have yet to implement mandatory KYC requirements for their customers, despite the global crackdown on unregulated cryptocurrency trading.
To know more: China will introduce significant changes to anti-money laundering encryption for the first time in 17 years
