7 minute read
Is MEXC Exchange FIU Registered in India?
from MEXC Exchange
by XM Blog
When it comes to using a cryptocurrency exchange in India, one of the most important compliance checks traders should do is to verify whether the exchange is registered with the FIU-IND (Financial Intelligence Unit – India). This registration ensures the exchange follows the anti-money laundering (AML) and counter-terrorist financing (CTF) rules under the Prevention of Money Laundering Act (PMLA). So, is MEXC Exchange FIU registered in India? The short and direct answer is: No, as of now MEXC is not registered with the FIU-IND.
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This means that MEXC currently operates in India without the formal registration that Indian regulators require from Virtual Digital Asset Service Providers (VASPs) to comply with AML laws. Let’s break down what this means, why it matters, and how it affects traders in India.
Understanding FIU Registration in India
The Financial Intelligence Unit – India is the central national agency responsible for receiving, processing, analyzing, and disseminating information related to suspicious financial transactions. In the context of cryptocurrency exchanges, FIU registration is a legal requirement for any exchange that serves Indian residents.
Since March 2023, India has made it mandatory for cryptocurrency exchanges — whether local or foreign — to comply with the PMLA. This means they must:
· Register with FIU-IND
· Conduct KYC (Know Your Customer) verification for all users
· Monitor transactions for suspicious activity
· Report certain types of transactions to the FIU
Without this registration, an exchange is not legally recognized as compliant with India’s anti-money laundering framework.
MEXC’s Current Status in India
MEXC, founded in 2018, is a global cryptocurrency exchange known for offering a wide variety of coins, competitive fees, and features like futures trading, spot trading, and staking. However, when it comes to regulatory compliance in India, MEXC does not appear in the official list of FIU-registered exchanges.
The Indian government has been cracking down on exchanges that operate without FIU registration. In late 2023 and early 2024, the Ministry of Finance directed FIU-IND to issue notices to several global exchanges, including Binance, KuCoin, Huobi, and others, warning them to register or risk being blocked in India. Many of these exchanges faced domain restrictions, app store removals, or payment gateway blocks.
MEXC has not yet made public announcements about obtaining FIU registration, nor is it listed on the FIU-IND portal as a registered VASP. This means that from a legal standpoint, Indian traders using MEXC are interacting with a non-compliant exchange under Indian law.
Why FIU Registration Matters for Traders
For traders in India, the FIU registration status of an exchange is not just a bureaucratic formality — it directly affects legal compliance, safety, and ease of use. Here’s why:
1. Regulatory Compliance
If you trade on an FIU-registered exchange, your activities are within the legal framework of India. This reduces the risk of sudden service disruptions or government actions against the exchange.
2. Risk of Service Restrictions
Non-registered exchanges face the risk of domain blocks, app removals, and banking restrictions in India. This can suddenly make deposits and withdrawals difficult.
3. Tax Reporting & TDS Compliance
Under India’s crypto tax regime, exchanges must deduct 1% TDS on every trade and report it to the Income Tax Department. FIU-registered exchanges comply with this, making it easier for users to stay tax-compliant.
4. Consumer Protection
While FIU registration does not guarantee the exchange will protect users from market risks, it does mean the exchange is bound by AML/KYC obligations, which reduces the likelihood of fraud and illicit activities.
Potential Risks of Using MEXC in India Without FIU Registration
Using MEXC in India today means accepting certain risks due to its lack of FIU registration:
· Possible Blocking of Access: Indian authorities may restrict MEXC’s website or mobile app in the country.
· Difficulty With INR Transactions: Non-registered exchanges typically cannot partner with local payment gateways, making INR deposits and withdrawals harder.
· Compliance Gaps: Without FIU registration, MEXC is not required to report suspicious transactions to Indian authorities, which could attract scrutiny if large volumes are involved.
· Tax Filing Complexity: You may have to self-calculate TDS and report trades manually, as MEXC won’t deduct and remit taxes on your behalf to the Indian government.
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Why Some Exchanges Delay FIU Registration
Many global exchanges — including MEXC — have been slow to register with FIU-IND for a variety of reasons:
· Complex Legal Requirements: Registration involves setting up a legal entity in India, hiring compliance officers, and adhering to strict AML reporting.
· Tax and Operational Burdens: Collecting and remitting 1% TDS for every trade can be challenging for high-frequency exchanges.
· Market Uncertainty: India’s crypto regulatory framework is still evolving, and some exchanges prefer to wait for clearer rules before committing.
· Privacy Concerns: Exchanges that market themselves as privacy-focused may hesitate to share user data with local regulators.
How Traders Can Check FIU Registration Status
If you want to confirm whether an exchange is FIU registered, you can visit the official FIU-IND website and check their list of registered reporting entities. Registered crypto exchanges are listed under Reporting Entities – Virtual Digital Asset Service Providers.
As of now, popular FIU-registered exchanges include CoinDCX, WazirX, ZebPay, and a few others. MEXC is not on the list.
Alternatives for Indian Traders Who Want FIU-Compliant Platforms
If compliance is your top priority, you may want to use exchanges that have FIU registration in India. These include domestic platforms and a few international ones that have chosen to comply. While MEXC offers competitive trading features, switching to an FIU-compliant platform may help you avoid sudden access issues and ensure tax compliance.
Will MEXC Get FIU Registration in the Future?
It’s possible that MEXC may eventually register with FIU-IND. Given India’s growing crypto market, it would be strategically beneficial for MEXC to comply and gain access to Indian users without legal risks. Other exchanges, such as KuCoin and Binance, have already begun compliance steps after facing restrictions.
If MEXC follows the same path, Indian users could see a smoother and more regulated trading experience. However, until MEXC makes an official announcement and appears on the FIU-IND list, its legal status in India remains non-compliant.
How to Safely Use MEXC in India Until It Registers
If you still choose to trade on MEXC despite the lack of FIU registration, consider these precautions:
1. Avoid Large INR Transfers: Since banking channels may be unstable, use stablecoins or other crypto assets to fund your account.
2. Withdraw Funds Regularly: Don’t keep large balances on the exchange for long periods.
3. Keep Tax Records: Track all trades and calculate your 1% TDS and capital gains manually for Indian tax filing.
4. Use Secure Access Methods: Enable 2FA and use strong passwords to reduce the risk of account compromise.
5. Stay Updated on Regulations: Monitor official FIU announcements to know if MEXC’s status changes.
The Bigger Picture: India’s Approach to Crypto Regulation
India’s move to require FIU registration for crypto exchanges is part of a global trend to bring virtual assets under existing AML and CTF frameworks. The country’s focus is not on banning crypto outright but on ensuring it is not used for illicit purposes.
For exchanges like MEXC, FIU registration would mean committing to:
· Detailed KYC processes
· Regular suspicious transaction reporting
· Tax compliance with TDS deductions
· Cooperation with law enforcement when required
While this may add operational costs, it could also improve trust among Indian users and allow the exchange to grow in one of the world’s largest markets.
Final Verdict
To answer the original question clearly: MEXC Exchange is not FIU registered in India at this time. This means it operates without the official approval that Indian law requires from crypto exchanges serving residents. For Indian traders, this carries certain legal and operational risks, including potential access restrictions, tax compliance challenges, and lack of regulatory protection.
If your priority is regulatory compliance and smooth INR transactions, consider using an FIU-registered exchange. If you choose to continue with MEXC, be aware of the risks and take steps to protect your funds and maintain tax compliance.
India’s crypto landscape is evolving quickly. MEXC could decide to register in the near future, following the example of other global platforms that adapted to India’s regulatory demands. Until then, its legal position remains outside India’s official compliance framework.
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