7 minute read
Is MEXC Exchange Banned in Malaysia? Review Broker
from MEXC Exchange
by XM Blog
No, MEXC Exchange is not officially banned in Malaysia — but it is not registered or regulated by the Securities Commission (SC) Malaysia, which means it is considered an unauthorized platform. This status carries serious implications for investors and traders who choose to use MEXC within Malaysia. In this article, we'll dive into the current regulatory position, why MEXC is not approved, what it means for Malaysian users, the risks involved, and whether there are alternatives for trading cryptocurrencies legally and safely within Malaysia.
✅ Trade with MEXC now: Open An Account 👈
What Is MEXC Exchange?
MEXC is a centralized cryptocurrency exchange founded in 2018, offering trading for spot, futures, margin, and other crypto financial services. Known for its wide range of altcoins, leverage options, and relatively low trading fees, MEXC has grown rapidly, serving users globally.
However, global access doesn't equate to legal clearance in every country. Like many crypto platforms, MEXC operates in a regulatory grey zone in several jurisdictions, including Malaysia.
Regulatory Framework for Crypto Exchanges in Malaysia
To understand the status of MEXC in Malaysia, it's essential to know how the country regulates digital assets.
In Malaysia, cryptocurrencies are classified as securities under the Capital Markets and Services Act 2007 (CMSA). This means crypto trading platforms must be registered with and regulated by the Securities Commission Malaysia (SC).
The SC maintains a Registered Digital Asset Exchange (DAX) list — only exchanges on this list are legally authorized to operate in Malaysia.
Only the following platforms are officially approved to operate in Malaysia:
Luno Malaysia
MX Global
SINEGY
These platforms comply with local AML/CFT (Anti-Money Laundering and Counter-Terrorism Financing) requirements, user protection measures, and reporting obligations.
Is MEXC Regulated by the Securities Commission Malaysia?
No, MEXC is not regulated or registered with the Securities Commission Malaysia.
In fact, MEXC has been added to the SC’s Investor Alert List — a public list of entities that are not authorized to offer or promote financial products or services in Malaysia.
Being on this list does not mean MEXC is outright "banned" in a legal enforcement sense, but it signals that the SC considers it an unlicensed and potentially risky platform for Malaysian investors. The SC warns the public to exercise caution when dealing with any entity not registered with them.
The MEXC website may still be accessible in Malaysia, and some users can create accounts using a VPN or by bypassing geolocation restrictions. However, this does not change the legal and regulatory risks involved.
What Are the Risks of Using MEXC in Malaysia?
Using MEXC in Malaysia — or any unlicensed exchange — comes with several risks:
1. Lack of Investor Protection
Because MEXC is not regulated in Malaysia, users are not protected under local financial laws. If something goes wrong — like asset freezes, account hacks, withdrawal issues, or platform shutdown — you likely have no legal recourse under Malaysian jurisdiction.
2. No Local Support
MEXC does not have a physical presence or customer service infrastructure in Malaysia. This can lead to delayed or unresolved issues, especially during volatile market events or technical failures.
✅ Trade with MEXC now: Open An Account 👈
3. Legal and Tax Complications
Using unauthorized exchanges may complicate tax reporting and compliance with anti-money laundering regulations. The Malaysian Inland Revenue Board (LHDN) expects taxpayers to declare cryptocurrency income. Using unlicensed platforms makes it harder to provide reliable transaction records.
4. Increased Scam Exposure
Since MEXC is on the SC’s watchlist, scammers may use its name or impersonate its services in Malaysia. Without regulatory oversight, it becomes easier for fraudsters to target inexperienced investors.
Why Isn’t MEXC Approved in Malaysia?
The exact reason for MEXC’s exclusion from the SC’s list is not publicly stated. However, it typically comes down to one or more of the following:
Failure to meet local regulatory requirements
Lack of proper licensing or application submission
Non-compliance with AML/CFT standards
Absence of local office or operational transparency
Many global crypto exchanges operate without adapting to country-specific laws. Malaysia's regulatory environment, which favors consumer protection and financial transparency, may not align with how MEXC currently operates.
Can You Still Use MEXC in Malaysia?
Technically, yes — accessing MEXC from Malaysia is possible, as the website is not blocked nationwide. But just because you can access it doesn’t mean you should.
Here’s a breakdown:
Legality: Using MEXC is not technically illegal, but it is not legal either — it's in a grey area.
Risk Level: High, since it is unregulated and has no legal accountability in Malaysia.
Enforcement: The SC may not target individual users directly, but they can clamp down on promotional activities, marketing agents, or local partnerships.
So, while you can access and trade on MEXC, you do so entirely at your own risk. If any financial dispute arises, Malaysian authorities likely cannot help you.
What Should You Do if You’re Using MEXC?
If you're currently trading on MEXC while living in Malaysia, consider the following:
Withdraw Your Funds: If you’re concerned about regulatory risk, the safest option is to transfer your assets to a regulated exchange or a self-custody wallet.
Avoid Large Holdings: At the very least, avoid storing significant funds on unlicensed platforms.
Avoid Promoting MEXC: Recommending or promoting MEXC in Malaysia could put you at legal risk, especially if the SC views it as aiding unauthorized financial activities.
Use Licensed Alternatives: Consider switching to Luno, MX Global, or SINEGY — all of which are fully compliant and regulated in Malaysia.
What Are the Legal Crypto Alternatives in Malaysia?
To stay safe and compliant, it's recommended to trade on licensed crypto exchanges. Here are three options:
1. Luno Malaysia
One of the most popular crypto platforms in the country. Luno supports BTC, ETH, XRP, LTC, BCH, UNI, and a few other tokens. It is mobile-friendly and beginner-oriented.
2. MX Global
A local crypto exchange focusing on compliance, security, and providing ringgit (MYR) fiat on/off ramps. MX Global has partnerships with major financial players.
3. SINEGY
SINEGY offers institutional-grade crypto trading infrastructure and focuses on regulated crypto-asset trading services.
Using these platforms ensures your investments are covered by local laws and SC oversight — greatly reducing the risk of scams, loss, or fraud.
Final Verdict: Should Malaysians Use MEXC?
If you're in Malaysia, using MEXC is risky and not advisable.
Even though it’s not officially “banned” or blocked, MEXC’s inclusion in the SC’s alert list means it is operating without legal approval. Malaysian regulators want investors to use platforms that adhere to local laws, provide proper consumer protection, and comply with anti-money laundering frameworks.
For those who want to trade crypto safely in Malaysia, the best path is to use approved exchanges regulated by the Securities Commission Malaysia.
✅ Trade with MEXC now: Open An Account 👈
Summary: Key Takeaways
MEXC is not banned, but it is not authorized to operate in Malaysia.
It appears on the Securities Commission Malaysia’s Investor Alert List.
Using MEXC exposes you to legal and financial risk with no local investor protection.
It is recommended to use licensed exchanges like Luno, MX Global, or SINEGY instead.
While MEXC may seem attractive for altcoins or low fees, the regulatory risk outweighs the benefits.
Closing Thoughts
The cryptocurrency space is still evolving, and regulatory clarity is crucial — especially in emerging markets like Malaysia. As more countries take a firmer stance on compliance, using unlicensed platforms will become riskier.
In short, trading on MEXC in Malaysia is like walking a legal tightrope. You might be fine — until you’re not.
Always prioritize security, legality, and long-term stability over short-term gains. When in doubt, choose platforms that are legally recognized and accountable in your jurisdiction.
Read more:
