Cryptocurrency exchange MEXC Global has been investigated by German regulators for supplying economic companies without the need of a license.
Germany investigated MEXC for lack of working license
On October 17, 2023, the German Federal Financial Supervisory Authority (BaFin) issued warning to MEXC customers that this exchange presents economic companies on the web site “mexc.com” without the need of a license.
Announcement of BaFin investigation into MEXC. Source: Homepage of the regulator (bafin.de)
Based on segment 37(four) of the German Banking Law (Kreditwesengesetz – KWG), the German economic regulator states that “cryptocurrency custodian companies this kind of as MEXC need to acquire authorization Licensed by BaFin” if you want to give connected companies:
“Financial services can only be approved in Germany if the companies providing these services receive the necessary licenses from BaFin.”
At the very same time, the economic manage company with each other with the German Federal Criminal Police Office (BKA) and the German State Criminal Police Office (Landeskriminalämter) advise customers to be incredibly cautious and carry out the essential investigation prior to investing on line to stay clear of getting scammed.
This is not the 1st time MEXC has encountered domestic legal complications. In April 2023, this exchange also acquired a warning letter from the Japan Financial Services Agency (FSA) for working without the need of a license.
Germany is also taking stringent legal measures in the cryptocurrency sector to reduce doable hazards for traders. In June 2023, BaFin also refused to license Binance, forcing the top exchange to give up its market place share in the nation nicknamed “tanks”.
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