Germany's financial regulator, BaFin, has issued a warning against cryptocurrency exchange MEXC for offering crypto custody services without the requisite approval.
The warning accentuates the mandatory regulatory permission needed by entities to offer financial services within Germany.
The regulator, alongside the Federal Criminal Police Office and state criminal investigation offices, advised consumers to exercise caution while venturing into online investments and to conduct extensive research to avoid potential fraud.
MEXC's crypto custody offering comes under the spotlight at a time when regulatory frameworks surrounding digital assets are being stringently examined.
The German regulator’s advisory also encourages individuals to educate themselves about financial market fraud through resources like BaFin’s consumer protection podcast episode titled “Beware, Fraud.”
The scrutiny on MEXC isn't isolated to Germany. Earlier in April, MEXC Global faced a similar hurdle in Japan where the Financial Services Agency (FSA) flagged the company for operating without necessary registration, CoinDesk reports.
The scenario unfolds as the cryptocurrency realm continues to burgeon, capturing the spotlight at various global discussions including Benzinga's Future of Digital Assets conference on Nov. 14. The event will serve as a platform for discourse on the genuine value and real-world applications of crypto and blockchain, aligning with the ongoing global narrative on regulatory frameworks essential for the sustainable growth of the digital assets space.
Read Next: Crypto Bull Scaramucci Sees 3X Gains For Bitcoin, Ethereum, And Algorand — Here's Why
Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!
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