MEXC Exchange Imposes KYC Restrictions on Chinese Users

According to reports, the cryptocurrency exchange MEXC is taking action against users who are not confirmed and may be from China's mainland.

Chinese blockchain journalist Colin Wu claims that MEXC has started limiting mainland Chinese users' accounts who still need to finish the KYC (Know Your Customer) verification process. Wu cites sources in the local cryptocurrency community for this information.

The impacted consumers are reportedly left with no choice except to stop their trading orders and withdraw their cryptocurrency to other exchanges, even if the precise cause for this decision is still unknown.

MEXC has yet to release an official statement on the subject as of the time of publication. The action was taken in response to a warning issued by the Securities and Futures Commission of Hong Kong about an alleged fraud in which imposters sought to imitate MEXC's operations in the area.

The Hong Kong watchdog believes that victims were tricked into joining chat rooms on social media or instant messaging services with the promise of getting free financial advice.

Those interested in buying cryptocurrency were allegedly sent to websites supposedly “run by MEXC.”As of this writing, MEXC is one of the few exchanges that, despite the worldwide crackdown on unregulated cryptocurrency trading, has not yet imposed strict KYC requirements for its users.