7 minute read
Is MEXC Legal in Pakistan? What You Need to Know
from MEXC
by Exness_India
Yes, MEXC is accessible in Pakistan, but its legal status is not officially recognized or regulated by the Pakistani government. This makes its use fall into a legal gray area. While Pakistani users can register, deposit, and trade on MEXC, the lack of formal regulation and potential scrutiny from financial authorities raises important questions about safety, legality, and compliance.
In this article, we’ll break down the current legal context of MEXC in Pakistan, the regulatory stance of Pakistani authorities on crypto, risks of using unregulated exchanges, and what Pakistani users should keep in mind before using platforms like MEXC.
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What is MEXC?
MEXC is a centralized cryptocurrency exchange launched in 2018. It offers a wide range of crypto assets, including spot trading, futures, leveraged tokens, staking, launchpad projects, and more. Known for supporting a massive number of tokens and high-leverage trading (up to 200x), MEXC has quickly gained popularity among global crypto traders—especially in regions where mainstream exchanges like Binance or Coinbase have limited operations.
But does this popularity mean it's legally safe to use in Pakistan? Not necessarily.
Is Cryptocurrency Legal in Pakistan?
To understand whether MEXC is legal in Pakistan, we must first understand the country's stance on cryptocurrencies.
State Bank of Pakistan’s Position
The State Bank of Pakistan (SBP) issued a circular in April 2018 that prohibited banks and financial institutions from dealing in virtual currencies or tokens. The circular directed all financial institutions not to facilitate anyone in trading, holding, transferring, or investing in cryptocurrencies.
This ban, however, was aimed specifically at regulated financial institutions, not individual users. Since then, no specific law has criminalized the individual use of crypto or platforms like MEXC, but there has been no move to legalize or regulate it either.
So, the situation is simple but unclear:
· Crypto is not officially legal or illegal in Pakistan.
· Banks and regulated institutions cannot support crypto transactions.
· Individuals still use crypto platforms, but at their own risk.
Does MEXC Operate Legally in Pakistan?
No, MEXC does not have a license to operate as a regulated financial entity in Pakistan. It is not registered with the Securities and Exchange Commission of Pakistan (SECP) or the SBP.
However, this doesn’t mean it's blocked. As of 2025, MEXC’s website is accessible in Pakistan without using a VPN, and many Pakistani users trade on the platform daily. The exchange also allows deposits and withdrawals via peer-to-peer (P2P) trading, crypto wallets, and third-party payment gateways that can bypass traditional banks.
So while MEXC does not have legal authorization to operate as a financial service provider in Pakistan, users are still able to use it. The key point is that they are doing so without legal protection.
Can Pakistani Users Register on MEXC?
Yes. MEXC allows users from Pakistan to register, verify their identity (KYC), and use the platform's features. The registration process accepts Pakistani phone numbers and passports or CNICs for identity verification.
That said, since MEXC is not locally regulated, there is no recourse to Pakistani authorities if something goes wrong, such as:
· Account bans or freezes
· Loss of funds due to platform issues
· Scams involving fake tokens
· Technical problems during withdrawals
In short: You can register, but you’re on your own.
Is It Safe to Use MEXC in Pakistan?
Technically yes, legally uncertain. Let’s break it down.
Technical Security
MEXC has not experienced any major security breaches as of 2025. It offers:
· 2FA (Two-Factor Authentication)
· Email and SMS verification
· Withdrawal whitelist
· Anti-phishing codes
So in terms of technical security, MEXC is considered relatively safe among centralized exchanges.
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Legal Safety
Legally, things are trickier. Since crypto trading is not formally legalized in Pakistan:
· Your funds are not protected under Pakistani law.
· MEXC is not accountable to Pakistani authorities.
· If MEXC were to shut down or restrict Pakistani users, there would be no legal process to recover your assets.
· Using local bank cards to purchase crypto may lead to account restrictions by your bank.
The lack of regulation means you carry the full legal and financial risk of using the platform.
Could the Government Ban MEXC?
It’s possible. The Pakistani government has previously taken actions to block access to certain international platforms. For example, Binance was investigated by the Federal Investigation Agency (FIA) in early 2022 over suspected money laundering and scam-related issues.
If similar concerns arise around MEXC, the Pakistan Telecommunication Authority (PTA) could block its website. However, such bans are usually not very effective—users often continue accessing these platforms via VPNs.
Still, this demonstrates the fragile status of MEXC and other crypto platforms in the country.
Are There Any Pakistani Laws That Criminalize Crypto Trading?
As of now, there is no law that criminalizes personal use or holding of cryptocurrencies. However, using crypto for illegal activities such as:
· Money laundering
· Terror financing
· Scams
· Unregistered investment schemes
can lead to serious legal consequences. The FIA and other law enforcement agencies closely monitor financial transactions related to suspicious crypto activity.
Using MEXC for legitimate trading is not a crime, but you must ensure all your crypto activities comply with Pakistan's anti-money laundering (AML) laws.
What About Taxes?
There is currently no official tax framework for cryptocurrencies in Pakistan. That means:
· You are not required to declare crypto gains officially.
· But you also cannot declare crypto losses or claim deductions.
This might sound like a win—but it’s actually a risk. If crypto trading gains grow large and the government later imposes retroactive taxes or audits, you could face penalties for unreported income.
The Federal Board of Revenue (FBR) has shown interest in taxing crypto in the future. So Pakistani crypto traders should keep records of all trades, deposits, and withdrawals in case regulations change.
Alternatives to MEXC in Pakistan
If you’re worried about the unregulated status of MEXC, here are some alternatives—though the same legal gray area applies:
1. Binance – Still accessible and widely used in Pakistan, but under scrutiny.
2. KuCoin – Popular for altcoins and lower KYC requirements.
3. OKX – Gaining traction for its futures and staking options.
4. P2P Platforms – Like LocalBitcoins, but riskier due to scams.
No exchange is officially licensed in Pakistan, so the risk remains regardless of the platform.
Final Verdict: Should You Use MEXC in Pakistan?
You can—but proceed with caution.
To summarize:
· ✅ MEXC is accessible in Pakistan.
· ✅ You can register, verify, and trade on it.
· ❌ MEXC is not licensed by any Pakistani regulatory body.
· ❌ You have no legal protection if something goes wrong.
· ⚠️ The use of crypto is discouraged by banks and regulators.
If you decide to use MEXC in Pakistan:
· Use strong security practices (2FA, cold wallets).
· Avoid large deposits or holding funds on the platform long-term.
· Never use your primary bank account for direct crypto purchases.
· Stay up to date on local regulations.
The Pakistani crypto market is still evolving. Until formal legalization and regulation arrive, using MEXC will continue to be a legally gray, high-risk activity. It’s up to individual users to weigh the risks and decide accordingly.
Final Thoughts
MEXC offers a powerful platform for crypto traders—but in countries like Pakistan where crypto remains unregulated, convenience comes at a cost. Without legal safeguards, using such exchanges always carries a level of risk. Until the government introduces a clear crypto policy, you’re responsible for protecting your assets, your identity, and your financial security.
Always do your research, don’t invest more than you can afford to lose, and stay informed.
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