Phemex Review: Popularity Doesn’t Make a Business Legal

Our first impression of this cryptocurrency trading service is incredibly good. Their website is of unmistakably high quality, easily comparable to those of industry giants. The platform features a proprietary app, proof of solvency, a high-profile founding team… It’s almost too hard to believe that the exchange is completely unregulated!

Yes, you read that right – one of the top 100 crypto exchanges by volume is actually an illicit entity. Read the remainder of our Phemex review to learn what this actually means for the clients.

Shady Corporate Structure

The Terms and Conditions document names the parent company of the Phemex exchange as “Phemex Group.” It never discloses where it is located. Instead, it’s a “blink and you’ll miss it” affair with a scrolling banner on the website, which alleges the existence of Polish and Czech branches. Entries in the Czech Registry of Companies and Polish Biznes.gov.pl confirm this.

The branch company is called Phemex Czech s.r.o. and PHEMEX POLAND SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ. So, no Phemex Group yet.

Official social network profiles claim that the firm is situated in Singapore and Turkiye. In the case of Singapore, we found two struck-off Phemex firms in the Bizfile database. As for Turkiye, TOBB says they never existed.

Unregulated and Blacklisted

So, why would such a popular crypto exchange hide their corporate info in such a cryptic way? Well, for starters, if you look into the ČNB and KNF registers of licensees, you’ll see that the firm is completely unregulated.

Now, if you’re thinking that it may still be an honest business, we’ve got some bad news. The Phemex crypto exchange has had so many warnings we had to make a list of regulators that blacklisted them:

• FCA
• CNMV
• A–TVP
• FSMA
• FMA
• FI
• FSC
• IOSCO

In short terms, this crypto exchange, although popular, is no better than your average scammer like BitTurk. If you’ve invested with this firm and now your assets are stuck, feel free to contact our experts.

How The Exchange Advertises

The exchange has been in service since at least 2016, according to the WhoIs database. During almost a decade of activity, it became most popular in these regions:

• Germany
• United Kingdom
• Russia
• Australia
• Canada

Achieving such a large number of users is mostly achieved through social networks. The firm operates accounts on X, Instagram, LinkedIn, CrunchBase and Telegram.

Besides the official YouTube profile, many influencers are also trying to take advantage of the affiliate program. This constant viral advertising, coupled with referral incentives, makes the company similar to an MLM to a degree.

Clients Aren’t Very Satisfied

The Phemex reviews are not exactly flattering. The company has a trust score of only 2.3 out of over 200 ratings on TrustPilot. Reading the negative reviews reveals serious problems with the company.

Immediately, you’ll spot 3 types of complaints. The 1st group says that their account was hacked, and the balance was emptied out. The 2nd group says that funds transferred to other accounts simply disappear, while the 3rd claims it is impossible to withdraw funds.

Your funds are not safe with unregulated exchanges. If you believe you have been defrauded, contact our legal team.

Too Many Unnecessary Accounts

Each newly registered client gets an omnibus Phemex login account, which features several specialized sub-accounts:

• Spot
• Contract
• Margin
• Investment
• FIAT
• Lending

As you may guess from the names, each of these account types serves a particular purpose. Clients are encouraged to split their investments and then shift funds from one account to another.

Ridiculously Simplistic Software

For desktop users, the exchange provides a simplistic WebTrader. The chart is based on TradingView charts, and is not much dissimilar to different software used by other cons like Rommode. There are no advanced features, but at least you get limit, market, conditional and basket orders covered.

The Phemex app for mobile devices is similar in functionality. Instead of relying on a web browser, it is a dedicated program available for download through GooglePlay and AppStore.

Learning About Fees is a Hassle

Imagine walking into a grocery store that doesn’t have a price tag on every single item. If you ask the clerk, they will tell you, but you have to ask for each item individually. That’s how fees work with this company.

We had to dig deep to find out that the firm charges fees on deposits (0.8% to 3.5%), withdrawals (0.08% to 2%+$30), transactions, dormancy, maker and taker fees (0.1%), contract (0.01%) and commission.

Margin trading leverage can be as high as 1:5, which is higher than the legal limit in most nations. It is also the probable cause for the Phemex UK warning issued by the FCA.

Buying Incentives

Another regulatory violation lies in the fact that the firm offers numerous bonuses. Although not explicitly called “bonuses” but “rewards”, these include incentives for creating an account, verifying it, depositing, referring others, and so on. Clients are apparently eligible for a 4,800 USDT “reward” just for passing KYC.

Funding and Payouts

At least the financial channels are well-defined. As expected from a firm that deals with spot and p2p trading and exchange, both fiat and crypto methods are available. Clients may deposit FIAT currency using bank cards (Visa, MasterCard), bank transfers (SEPA, ACH, Wire), or payment services like GooglePay, Pix, and others. Supported crypto deposits may be done on-chain or through a Web3 wallet. These both include a number of different coins and networks.

Withdrawal channels remain pretty much the same, and the payout policy is well-defined in the Terms and Conditions. Judging from the complaints, however, it doesn’t seem like the firm respects their end of the bargain every time.

Talking to a Computer

Customer support is available through a live chat option. It heavily relies on a chatbot, which is programmed to avoid connecting to a support agent as much as possible.

Our inquiry about the commission kept us running in circles between FAQs and the chatbot. After a while, we understood the frustration many of the clients felt before us.

Need Help Recovering Crypto? Call Us!

Popularity is not an indication of trustworthiness. This firm has been blacklisted across Europe for its illicit conduct.

While it is possible to track the cryptos lost in the Phemex trading scam, you must act quickly. Gather all the transaction data you can, and contact our experts for help. You may reach us at any time and book a free first consultation by using the live chat.

FAQ