What Crypto Exchanges Are Banned in India? 2026 Update on FIU-Compliant Platforms

India never banned cryptocurrency itself-but it did shut the door on dozens of international crypto exchanges that refused to play by its rules. If you’re trying to trade crypto in India today, you need to know which platforms are blocked, which ones are legal, and why the difference matters more than ever.

What Exactly Got Banned?

It’s not about the coins. It’s about the platforms. Starting in 2023 and accelerating through 2024, India’s Financial Intelligence Unit (FIU-IND) started blocking websites and apps of foreign crypto exchanges that didn’t register under Indian law. These weren’t random takedowns. They were systematic enforcement actions against platforms that refused to comply with reporting rules, KYC standards, and transaction tracking requirements.

Exchanges like Binance, KuCoin, and Bybit were among the first to lose access. Their websites stopped loading for Indian users. Mobile apps disappeared from app stores. Bank transfers to these platforms were blocked. Even if you had money in them, withdrawing INR became nearly impossible.

The reason? No FIU-IND registration. That’s the key. Every exchange that wants to serve Indian customers must register with FIU-IND and submit detailed records of every trade, deposit, and withdrawal. Non-compliant platforms simply don’t get a license to operate.

Why Did India Do This?

India’s move wasn’t about stopping crypto-it was about controlling it. Before 2023, users flocked to offshore exchanges like Binance and KuCoin because they offered lower fees, more coins, and better liquidity. But those platforms didn’t report user data to Indian tax authorities. That meant billions in crypto gains went untaxed. The Enforcement Directorate (ED) started investigating suspected money laundering cases tied to unregulated platforms, and the government realized it needed a way to track transactions.

The turning point came with Section 285BAA of the Finance Bill, passed in February 2025. It gave FIU-IND the power to demand historical trade data from any exchange serving Indian users-even if they registered years later. That meant if Binance signed up in 2026, they’d have to hand over every trade made by Indian users since 2020. No exchange wanted that kind of liability, so most just walked away.

The result? A clean break. India now has a clear line: if you’re not registered with FIU-IND, you’re banned. No gray area. No exceptions.

Which Exchanges Are Still Legal in India?

The legal ones are all Indian. They’re the ones that registered with FIU-IND and built their systems to meet local compliance rules. These platforms now dominate the market. Here are the top five:

• CoinDCX - India’s largest exchange by trading volume. Grew over 2,000% in deposits after foreign platforms were blocked.
• WazirX - Acquired by Binance in 2019 but now fully compliant. Offers INR deposits and tax reports.
• ZebPay - One of India’s oldest exchanges. Still operating since 2014 with full FIU registration.
• Unocoin - First Indian crypto exchange to get FIU registration. Known for strong customer support.
• Mudrex - Gained 10,000+ new users in weeks after the crackdown. Popular for automated trading bots.

These platforms now handle 95% of all crypto trading in India. They’re the only ones that can legally accept INR deposits, issue tax statements, and cooperate with authorities if needed.

What Happens If You Use a Banned Exchange?

You can still access banned exchanges using VPNs or third-party wallets-but it’s risky. Here’s what you’re signing up for:

• No INR withdrawals - Banks block transfers to unregistered exchanges. Your money might be stuck.
• No tax reports - You’re on your own to track every trade and calculate 31.2% tax. No CSV exports. No auto-filing.
• No customer support - If your account gets frozen, there’s no Indian legal recourse. You can’t file a complaint with RBI or FIU.
• Account freezes - Exchanges like Binance have frozen Indian accounts without warning, citing compliance issues. No refunds.
• Tax penalties - If the tax department finds unreported crypto gains, penalties can hit up to 60% of the profit under Section 158BA(7).

One trader in Hyderabad lost ₹4.8 lakhs in ETH after Binance froze his account. He couldn’t prove ownership because he used a non-FIU exchange. No one in India could help him.

What About Decentralized Exchanges (DEXs)?

DEXs like Uniswap or PancakeSwap aren’t blocked because they’re not companies-they’re smart contracts. But here’s the catch: you still owe taxes on every trade. And if you use a DEX to swap crypto into INR via a peer-to-peer (P2P) platform, you’re still subject to the same tax rules. The FIU doesn’t care if you used a DEX or a centralized exchange. If you made a profit, you pay tax.

The real danger with DEXs? You’re completely on your own. No KYC means no audit trail. If the tax department comes knocking, you’ll have to prove every transaction manually-without any help from the exchange.

Will Binance or Coinbase Ever Come Back?

Technically, yes. They can register with FIU-IND anytime. But they’d have to hand over years of user data, hire local compliance teams, and accept Indian tax reporting rules. That’s expensive and risky. So far, none have taken the step.

Coinbase briefly explored setting up an Indian entity in 2024 but backed out after realizing the cost of retroactive data reporting. Binance paid ₹75 crore in penalties in 2024 for past non-compliance but hasn’t reapplied.

The bottom line: unless they’re willing to become Indian financial institutions, they won’t return.

What Should You Do Now?

If you’re trading crypto in India, your only safe path is to use an FIU-registered exchange. Here’s what to do:

1. Move all funds from banned exchanges to CoinDCX, WazirX, or another registered platform.
2. Download your trade history from old accounts and calculate gains manually.
3. File your crypto taxes by July 31, 2026, using Form ITR-2 with Schedule CG.
4. Keep records for six years-FIU-IND requires exchanges to store data that long, and tax authorities can audit back five years.
5. Never use a VPN to access banned platforms for trading. It doesn’t make you safer-it makes you invisible to the law.

Is Crypto Still Legal in India?

Yes. But only if you use the right platforms. The government hasn’t outlawed crypto. It’s just saying: if you want to trade here, you play by our rules. That means registering, reporting, and paying taxes.

The era of offshore exchanges dominating India’s crypto market is over. The winners aren’t the ones with the most coins or the lowest fees-they’re the ones that followed the law.