As Pakistan makes a name for itself in the world of digital finance, the use of cryptocurrencies is growing faster than regulations can keep up.
According to Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), the country is one of the top ten in the world for using cryptocurrency, and more than 15 million people now own digital assets.
The rupee’s recent weakness, inflation that just hit 6.2%, and a banking system accessible to fewer than half of the population, per data from the State Bank of Pakistan, have driven millions, especially the young, to turn to crypto for financial freedom.
But this excitement has also come with an increase in fraud, phishing, and cyber theft. Pakistan’s crypto scene is reportedly rife with scams, which have been exacerbated by unclear laws, weak enforcement, and the lure of quick profits.
The biggest targets are often retail traders lacking institutional protection. They are targeted through fake Telegram groups pretending to be global exchanges, SIM-swap attacks, and cloned trading websites. A single breach could wipe out all of a person’s savings, and victims have no way to get help because banks, regulators, and courts are having trouble stepping in.
The price of progress without protection
This lack of accountability is what turns events like the $100 million crypto scam in Faisalabad, which lured 37,000 people into using fake trading apps, into cautionary tales. Many of these scams used the names and logos of real exchanges to gain trust before stealing funds.
The Virtual Assets Act (2025) and the creation of the Pakistan Crypto Council (PCC) are both important steps toward regulation. The goal of the Pakistan Digital Asset Authority (PDAA) is to license and oversee exchanges, which will help legitimize the market.
But a regulatory framework is only part of the picture. The other, which is arguably more important, is how exchanges protect users through their own systems, transparency, and collaboration with law enforcement.
What responsible exchanges can do right now
Crypto platforms are not helpless in the face of risk. The best ones have created multi-layered security systems that are a mix of the latest technology and human accountability.
A good example of this can be seen in the most recent MEXC Security Bimonthly Report (September–October 2025), which shows how exchanges can make trading safer even when the market is unstable.
This global exchange keeps a Proof of Reserves (PoR) showing all customer assets are backed fully on a 1:1 basis. Even better, users can easily see these reserves on their own through clear dashboards, a level of transparency that needs to be more common in an industry often criticized for being secretive. Such systems don’t just build trust, but they also allow regulators to confirm that customer funds aren’t being used for the wrong reasons.
MEXC has also funneled more than $100 million into its Guardian Fund and Futures Insurance Fund, which are designed to protect traders from sudden losses and system shocks.
Just as importantly, the platform has made this information available to the public, allowing anyone to see fund balances in real time. That should be the level of transparency users must require from crypto exchanges if they want to gain or retain their trust during and after controversies or technical issues.
Apart from this, MEXC appointed Hacken as an independent external auditor to enhance user safety. The company will be publishing reserve verification reports without any editorial influence from MEXC.
From controversy to course correction
Earlier this year, MEXC received considerable criticism for freezing thousands of accounts as part of its anti-fraud measures. The incident prompted the company to accelerate reforms, including fast-track user recovery channels and clearer, more transparent risk-control rules. According to Chief Strategy Officer Cecilia Hsueh, 90% of valid cases were resolved within three days—an uncommon level of responsiveness in a sector where many platforms choose silence under pressure.
These actions highlight an important point: trust in crypto exchanges isn’t built by avoiding problems, but by addressing them quickly, openly, and with accountability.
Learning from global standards
As the Pakistan Virtual Asset Regulatory Authority (PVARA) opens its call for Expressions of Interest from international exchanges, the moment to prioritize security has arrived.
Any platform entering the local market must demonstrate clear Proof of Reserves, transparent insurance systems, and cooperation protocols with law enforcement. Platforms such as MEXC have demonstrated that these measures are not merely theoretical concepts but rather replicable operational realities.
For the South Asian economy, a safe and regulated crypto infrastructure is highly needed, especially considering that each year, it receives billions of dollars in remittances. Stablecoins already function as digital dollars for freelancers and exporters, while blockchain corridors for cross-border payments are proving faster and cheaper than traditional banking routes.
Building a foundation of trust
The country’s crypto future depends on trust: in exchanges, in regulators, and in technology. And while this cannot be legislated overnight, it can be built through consistent transparency, collaboration, and responsible innovation.
It is for this reason that exchanges that publish real-time data, can recover user funds after errors, and work hand-in-hand with authorities to stop fraud, will stand out in the new era of accountability.
It’s clear what policymakers need to do as they work on the next part of the digital asset framework: security can’t be an afterthought. It has to be the foundation of adoption. Exchanges that follow this principle will not only protect their users, but they will also help shape the future of crypto in Pakistan and beyond.