Crypto exchange MEXC has reportedly initiated a crackdown on unverified users suspected to be from mainland China.
According to Chinese blockchain journalist Colin Wu, citing sources within the local crypto community, MEXC has begun imposing restrictions on accounts of users from mainland China who have not completed the 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 undisclosed, affected users are purportedly left with only the option to close their trading orders and withdraw their crypto to alternative exchanges.
As of press time, MEXC has not issued any official statements regarding the matter.
The move comes after the Securities and Futures Commission of Hong Kong issued a warning regarding an alleged scam involving imposters attempting to mimic MEXC’s operations within the region.
The Hong Kong regulator suspects that victims were enticed to participate in 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 crypto trading.
Read more: China to introduce significant changes to crypto AML for the first time in 17 years