7 minute read
MEXC App is Legal in India? What You Need to Know
from MEXC
by Exness_India
Yes, the MEXC app is currently legal in India. However, legality doesn't mean it's regulated, and this distinction is crucial for Indian crypto users. If you're wondering whether you can use the MEXC crypto exchange app safely and legally in India, the answer is yes—but with caveats that every investor or trader should understand.
In this article, we’ll break down the legal status of MEXC in India, examine the regulatory framework around crypto trading, and help you understand what it means to use international exchanges like MEXC as an Indian resident.
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What Is the MEXC App?
MEXC (short for "Mandala Exchange") is a global cryptocurrency trading platform that offers spot trading, futures, margin trading, staking, and launchpad access to a wide range of tokens. It’s known for its vast selection of altcoins, competitive trading fees, and easy-to-use interface.
The MEXC app is available on iOS and Android and allows users to trade over 1,500 cryptocurrencies, including lesser-known altcoins not found on larger exchanges like Binance or Coinbase.
But does MEXC operate legally in India?
The Short Answer: Yes, It Is Legal to Use MEXC in India
As of now, there are no specific Indian laws that prohibit the use of the MEXC app. Indian citizens can download the MEXC app, create an account, and trade cryptocurrencies on the platform. Many Indian users actively use MEXC and other foreign crypto exchanges such as Binance, KuCoin, and Bybit.
But here’s the catch: India does not currently regulate foreign crypto exchanges, which places them in a legal gray area.
So while using MEXC is not illegal, it’s also not officially recognized or licensed by any Indian financial authority. This distinction matters if you’re concerned about asset protection, regulatory oversight, and legal disputes.
India's Current Crypto Regulation Landscape
India's stance on cryptocurrencies has evolved significantly over the past few years. Here’s a quick summary of where things stand today:
1. Cryptocurrency is Not Banned in India
Contrary to outdated reports, cryptocurrency trading is not banned in India. The Reserve Bank of India (RBI) had initially issued a circular in 2018 preventing banks from dealing with crypto exchanges. However, the Supreme Court of India overturned that ban in March 2020, making it legal again for Indians to trade crypto.
2. Crypto Is Taxed in India
In 2022, India introduced a 30% tax on profits from virtual digital assets (VDAs), which includes cryptocurrencies and NFTs. Additionally, a 1% TDS (Tax Deducted at Source) applies on every crypto transaction.
This taxation law doesn’t ban crypto—it legitimizes it to an extent by treating it as a taxable asset. This also means that even if you trade on foreign exchanges like MEXC, you are legally obligated to report and pay taxes on your gains.
3. India Does Not Yet Regulate Foreign Crypto Exchanges
Foreign crypto exchanges like MEXC are not registered with the Indian government or regulated by SEBI (Securities and Exchange Board of India). This means:
They don’t fall under direct Indian jurisdiction.
You may face complications in case of fraud or disputes.
Your legal protections are limited compared to Indian-regulated entities.
So while MEXC operates legally in India in the sense that there's no ban, it is not governed by any Indian authority.
Why Do Indian Traders Use MEXC?
Despite regulatory uncertainty, many Indian crypto traders and investors continue to use MEXC for several reasons:
1. Access to a Wide Range of Tokens
MEXC offers many altcoins that aren’t available on Indian exchanges like WazirX, CoinDCX, or ZebPay.
2. Low Trading Fees
MEXC’s competitive fee structure makes it attractive for frequent traders and scalpers.
3. Futures and Margin Trading
Unlike some Indian platforms, MEXC allows leveraged trading—although users should be cautious, as this increases risk.
4. No Mandatory KYC (Up to a Limit)
MEXC allows basic trading without KYC (Know Your Customer) for small amounts. This appeals to users who value privacy.
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Are There Any Risks in Using MEXC from India?
Yes, there are several potential risks when using MEXC or any foreign exchange from India:
1. Lack of Regulation
Since MEXC isn’t registered with Indian regulators, you have limited recourse if something goes wrong. If the platform freezes your funds or you’re scammed, Indian courts and authorities may not be able to help.
2. Banking Restrictions
Sometimes Indian banks restrict transactions related to crypto, especially when funds are transferred to/from foreign exchanges. While UPI and INR deposits may work intermittently through P2P, official INR support is not guaranteed.
3. Compliance With Tax Laws
Even if MEXC doesn’t share user data with Indian authorities, you are legally required to report your crypto earnings. Failure to do so can lead to penalties or even legal trouble under the Income Tax Act.
4. Volatile Regulatory Environment
India’s crypto regulations are still evolving. There’s always a risk that future laws could impact your ability to withdraw funds or access foreign platforms like MEXC.
How to Use MEXC Legally and Safely in India
If you want to use MEXC in India while staying on the right side of the law, here’s a step-by-step checklist:
✅ 1. Report All Crypto Income
Even if you trade on MEXC, report all profits/losses in your annual income tax filing. Use tools like KoinX or CoinTracker to help calculate gains.
✅ 2. Pay the 1% TDS
If you're doing frequent trading, remember that you're supposed to deduct and pay 1% TDS on each trade. MEXC may not handle this for you, so manual compliance may be required.
✅ 3. Avoid Large Transfers Without Documentation
Use proper banking channels and document large transfers in and out of MEXC. Avoid suspicious activity that may attract scrutiny under FEMA or AML laws.
✅ 4. Use Strong Security Measures
Enable 2FA, withdrawal whitelists, and strong passwords to protect your MEXC account. Foreign exchanges are often targeted by phishing scams and hacks.
✅ 5. Stay Updated on Indian Crypto Laws
Follow updates from the Ministry of Finance, RBI, and SEBI regarding virtual assets. Regulations can change rapidly.
Is MEXC Likely to Be Banned in India?
At this time, there are no official indications that the Indian government plans to ban MEXC or similar platforms. However, recent developments (such as the ban of certain offshore betting apps or restrictions on unregistered financial services) have raised concerns.
The Financial Intelligence Unit (FIU) has warned unregistered crypto exchanges to comply with India’s anti-money laundering laws. If MEXC doesn’t register or cooperate with Indian authorities, it could face blocks or restrictions in the future—similar to what happened with Binance in early 2024.
So while MEXC is not banned right now, there’s a possibility that it could face restrictions later if Indian regulators tighten controls on offshore platforms.
Final Verdict: MEXC Is Legal in India—But Use with Caution
To summarize:
Using the MEXC app is legal in India.
MEXC is not registered or regulated by Indian authorities.
Indian users are responsible for paying taxes and complying with local laws.
There are real risks due to the lack of regulation, banking issues, and policy uncertainty.
If you're an Indian crypto trader or investor, you can use MEXC, but you need to be informed, cautious, and fully compliant with tax laws.
FAQs
❓ Is MEXC banned in India?
No, MEXC is not banned in India. It operates legally but is not regulated by any Indian authority.
❓ Can I deposit INR into MEXC from India?
MEXC does not support direct INR deposits. You may need to use crypto transfers or P2P platforms.
❓ Will I get in trouble for using MEXC in India?
Not if you follow Indian tax laws, report earnings, and don’t use MEXC for illegal activities.
❓ Is KYC required on MEXC?
KYC is not mandatory for small trades, but required for higher limits and withdrawals.
Conclusion
In a world of evolving regulations, crypto traders in India must strike a balance between opportunity and compliance. The MEXC app offers wide access to the global crypto market, but it's important to understand the legal framework and associated risks.
Yes, MEXC is legal in India, but it operates in a regulatory gray zone. Stay compliant, stay cautious, and keep an eye on future developments in India's crypto policies.
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