AFM warns consumers against crypto platform MEXC

MEXC operates as a crypto-asset service provider without the required license

MEXC is a crypto platform that focuses on providing crypto-asset services worldwide, including (at least) providing custody and administration of crypto-assets on behalf of clients, exchanging crypto-assets for funds, exchanging crypto-assets for other crypto-assets, reception and transmission of orders for crypto-assets on behalf of clients and operating a crypto-asset trading platform. MEXC actively targets Dutch consumers, including through active campaigns via MEXC's Dutch X account and sponsorship of a Dutch Blockchain conference. However, MEXC does not have a license and therefore illegally offers crypto-asset services in the Netherlands.

Licensing requirement for crypto-asset service providers

On December 30, 2024, the Markets in Crypto Asset Regulation (MiCAR) came into force. Under this European legislation, providers of crypto-asset services must have a license from the AFM, or another European regulator. Crypto-asset service providers must continuously comply with strict requirements such as asset segregation, the prevention of money laundering and conflicts of interest and the fair provision of information. MiCAR aims to take the crypto sector to a higher level of maturity and better protect investors.

Major risks for investors

The AFM sees major risks for consumers who invest with MEXC. MEXC offers very risky products that can lead to large losses for consumers. It is unclear from which country and from which legal entity MEXC offers its services. As a result, it is not possible to determine, for example, whether MEXC handles the assets of consumers with diligence and what position the consumer would have if MEXC were to run into financial problems, with the greatest risk being that consumers would lose their total investment.

The AFM's decision to issue a public warning can be submitted to the court for review by the affected parties.

If they have any questions, consumers can contact the AFM's Financial Markets Information Line: 0800-5400 540 (free of charge).