BaFin reminds consumers to be cautious when choosing crypto custody services.
Germany's Federal Financial Supervisory Authority (BaFin) has issued a warning to consumers about the MEXC exchange's crypto custody services. According to the statement, MEXC's crypto custody services require authorization from BaFin before they can be offered in Germany. The regulator advises consumers to exercise caution when dealing with the exchange due to concerns about the security and reliability of its custody services.
BaFin's warning comes amid growing concerns about the security of crypto exchanges and the safety of investors' funds. In recent years, several high-profile hacks and thefts have resulted in the loss of millions of dollars worth of crypto.
MEXC is a cryptocurrency exchange that offers a range of financial services, including trading, lending and custody. The exchange is based in Singapore and has been operating since 2018. It is not clear how many customers MEXC has in Germany or how much cryptocurrency is being held in its custody services.
BaFin is responsible for regulating financial services in Germany, including banks, insurance companies and investment firms. The regulator has the power to issue warnings and take enforcement action against companies that violate its rules and regulations.
In its warning, BaFin reminds consumers that financial services can only be offered in Germany if the company providing them is authorized by the regulator.
