MEXC Ramps Up Compliance Efforts Amid Fraud and Bot Trading Concerns
In Brief
MEXC has strengthened its risk control, compliance, and anti-fraud measures, using AI monitoring, enhanced KYC, and trading restrictions to protect users, ensure market fairness, and maintain long-term industry stability.
MEXC has announced a robust series of enhanced risk control and compliance measures, reinforcing its commitment to user protection, market transparency, and long-term industry stability.
A Stronger Stance Against Fraud
In an era where digital fraud evolves rapidly, MEXC has stepped up its fight against malicious actors through advanced real-time monitoring powered by AI technology.
Between July and August 2025, the exchange identified and restricted 17,464 accounts linked to fraudulent activities, stemming from 3,070 fraud syndicates, with significant concentrations in the CIS region and India. These efforts have resulted in a 62% drop in syndicated fraud compared to earlier periods.
The exchange’s AI-driven detection systems intercept suspicious behavior before it affects the platform, allowing MEXC to act swiftly and decisively.
Heightened Compliance & KYC Enforcement
To ensure adherence to global compliance standards, MEXC recently undertook a detailed review of user accounts and transactions. During this process, accounts associated with potentially risky funds faced temporary withdrawal restrictions. Affected users were asked to complete enhanced KYC procedures, enabling MEXC to validate account legitimacy.
The majority of these users have since passed verification and regained full access, while a smaller subset remains under restriction due to unresolved irregularities. All suspicious activities have been reported, with compliance reports submitted for July and August.
MEXC also continues to fully cooperate with international law enforcement agencies by responding to official freeze requests and assisting investigations involving any illicit financial activity.
Combating Harmful Bot Trading
MEXC’s futures markets have experienced an uptick in bot activity, particularly following a crackdown on coordinated trading behavior. While algorithmic tools are common in the crypto space, MEXC aims to maintain a fair trading environment for retail participants who may be disadvantaged by sophisticated bots.
Between July and August, 2,008 bot trading accounts were flagged and penalized, a 24% increase from previous months. These accounts violated platform policies designed to prevent unfair advantages and market manipulation.
By limiting such activity, MEXC supports a level playing field and discourages exploitative tactics that undermine retail users’ confidence.
A 365-Day Restriction For Coordinated Violators
To address long-term manipulation risks, MEXC has implemented a 365-day restriction policy for accounts involved in coordinated abuse, high-risk behaviors, or compliance red flags. This extended restriction period is designed to:
- Increase the operational cost of manipulative strategies.
- Prevent bad actors from circumventing restrictions by creating new accounts.
- Provide ample time for regulatory follow-up and enforcement.
This policy is also aligned with industry best practices alongside MEXC’s broader mission to deter harmful trading behaviors.
Upholding Confidentiality & Regulatory Standards
In compliance with legal obligations, MEXC is unable to disclose specific details of flagged accounts or internal investigations. While this practice may be alarming to some, it protects the integrity of enforcement processes and prevents “tipping off”, an act prohibited under global financial regulations.
Still, users seeking more clarity on restriction processes can consult the ‘Risk Control FAQ’ section and refer to quarterly risk reports for transparency on MEXC’s ongoing security efforts.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
