PayRate42 has consistently flagged the crypto exchange MEXC, placing it on the Red Compliance List due to multiple regulatory warnings and poor customer feedback. We revealed that MEXC processes its FIAT transactions for cryptocurrency purchases via MEXC Estonia OÜ, which holds a crypto license in Estonia. This Estonian entity, in turn, uses Paytend Europe UAB, doing business as Paytend, a Lithuanian-regulated e-money institution, to handle FIAT payments through bank transfers.
Key Findings and Concerns
MEXC and MEXC Estonia Use Lithuanian Paytend for Bank Transactions
- Significant Customer Relationship: Analysis of Similarweb data indicates that nearly 95% of referral traffic to Paytend’s website originates from MEXC, suggesting that MEXC is a major client for Paytend (see MEXC payment instructions screenshot).
- Operational Ambiguity: Officially, MEXC Estonia is claimed to be independent of the MEXC crypto exchange. However, our investigations reveal that MEXC Estonia is integrated into the MEXC Group, functioning as its payment agent in Europe and the EU. Despite the Estonian FIU revoking MEXC Estonia’s crypto license at the end of 2023, the company continues to operate, awaiting a court decision after its appeal against the FIU decision.
- Chinese Connections: Both MEXC and Paytend have Chinese backgrounds. Paytend Europe UAB, established in 2017 as part of the Chinese Paytend scheme, received its EMI license from the Bank of Lithuania in early 2018. The referral traffic patterns and the Chinese descriptions on MEXC EU’s website further highlight the deep connections between these entities.
MEXC operates its business in a completely opaque manner and has no known regulatory license or registration in most jurisdictions where it offers its crypto financial services. It is also known that MEXC operates in the Russian market despite the existing sanctions.
Red-Listed Crypto Exchange MEXC and Paytend
Read our MEXC Reports here on PayRate42.
Summary of Similarweb Analysis
Paytend Website Traffic from MEXC
- Referral Traffic: Almost 50% of Paytend’s website visitors are referred via other sites.
- MEXC Referrals: Nearly 95% of these referral visitors come from MEXC’s OTC platform (https://otc.mexc.com).
- Geography: More than 12% of the website visitors come from Russia, which tops the list of countries in the MEXC website analysis.
- Website Traffic: Paytend’s website saw less than 9,000 visitors over the 28 days leading up to May 24, 2024.
MEXC Key Data
- Trading Names: MEXC, MEXC Global, MEXC Ventures
- Business Activity: Crypto exchange
- Domain: www.mexc.com, www.mexceu.com, https://m-ventures.io
- Social Media: LinkedIn, X, Instagram, YouTube
- Legal Entities: MXC Technology Pte. Ltd., MEXC Global Ltd, MEXC Estonia OÜ, MEXC Lithuania, UAB, MX Global Ltd
- Contact Data: service@mexceu.com, investment@mexc.com
- Jurisdiction: Seychelles, Singapore, England (User Agreement)
- Related Individuals: John Chen (LinkedIn) a/k/a John Chen Ju, Yichen Peng, Ljudmila Budnikova
- Authorization: Estonian FIU crypto license
- Payment Options: Crypto, Credit/debit card
- Payment Processors: MoonPay, Banxa, Simplex, Paytend
- Trustpilot: 1.3-star rating with a “Poor” trust level
- Compliance Rating: Red
- Warnings: BaFin, FMA, BCSC, SFC, FCA, CNMV
Whistleblower Request
Given these interesting associations and operational overlaps, PayRate42 seeks additional information about Paytend, its Chinese affiliations, and its partnership with MEXC. We are particularly interested in understanding the full extent of the relationships and any potential regulatory or compliance violations.
The close cooperation between MEXC and Paytend raises significant questions about their business practices and regulatory compliance. Your insights and information could be crucial in uncovering the full story and ensuring transparency and accountability in the financial services sector.
Please share what you know via Whistle42. Your confidentiality and anonymity are guaranteed.