The Dutch Authority for the Financial Markets (AFM) published a public warning to consumers about crypto platform MEXC Global (MEXC), stating that it is active in the Netherlands as a provider of crypto-asset services without the required authorisation. The AFM also noted that MEXC is no longer registered in a trade register, making it unclear where the entity is established. The AFM described MEXC’s services as including custody of clients’ crypto-assets, exchanging crypto-assets for funds or other crypto-assets, receiving and transmitting crypto-asset orders on behalf of clients, and operating a crypto-asset trading platform. It said MEXC has been proactively approaching Dutch consumers, including via campaigns using its Dutch X account and through sponsorship of a Dutch blockchain conference. Under the Markets in Crypto-Assets Regulation, in force since 30 December 2024, crypto-asset service providers must hold a licence from the AFM or another European supervisor and meet ongoing requirements including asset segregation, anti-money laundering measures, conflict-of-interest management and fair disclosures. The AFM warned that MEXC offers very high-risk products and that uncertainty about the responsible legal entity and jurisdiction makes it difficult to assess how client assets are handled and what consumers’ position would be if the platform encountered financial problems, including the risk of losing their entire investment. Interested parties can submit the AFM’s decision to issue the public warning for judicial review.

Original source View in tracker