Crypto Exchange Ban in India: Which Platforms Are Blocked?

Crypto Exchange Ban in India: Which Platforms Are Blocked?
Sep, 14 2025

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Verify if a crypto exchange is compliant with FIU-IND regulations in India as of October 2025.

India’s crypto scene looks totally different today because the government cracked down on a bunch of foreign exchanges. If you’ve ever wondered which platforms you can’t use any longer, you’re in the right place. This guide breaks down the banned exchanges, explains why they got blocked, and shows where Indian traders are moving instead.

Why India Went After Crypto Exchanges

Back in 2018 the Reserve Bank of India (RBI) issued a circular that stopped banks from dealing with virtual currencies. That move didn’t ban crypto itself, but it made it hard for any exchange that didn’t have a solid compliance plan to operate. The real game‑changer arrived in early 2024 when the Financial Intelligence Unit‑India (FIU‑IND the agency that monitors money‑laundering risks and enforces crypto‑exchange registration) announced that every crypto platform serving Indian users had to register with it. If you missed the deadline, the FIU‑IND blocked your website and cut off banking access.

What "Banned" Really Means

When we say an exchange is banned, we’re talking about two things:

  • Technical blocking of the website or app by Indian ISPs.
  • Banking restrictions that prevent INR deposits or withdrawals.

Non‑FIU‑registered platforms also risk investigations by the Enforcement Directorate (ED) for possible money‑laundering. In short, a banned exchange can’t legally accept Indian customers, and users often lose access to their funds until they move to a compliant platform.

Banned International Exchanges (as of October 2025)

International crypto exchanges blocked in India
ExchangeBan ReasonCurrent Status
BinanceFailed FIU‑IND registrationBlocked; pending compliance
KuCoinMissing AML/KYC standardsBlocked; no announced roadmap
CoinbaseDid not file registration paperworkBlocked; exploring compliance
BybitPenalty for non‑compliance (₹ 12 million)Blocked; under appeal
Crypto.comInsufficient data‑retention policyBlocked; awaiting FIU review

These bans hit traders hard, but the market quickly shifted to home‑grown platforms that had already completed FIU registration.

Top FIU‑Compliant Indian Exchanges

Here are the platforms that are currently legal and thriving:

  • CoinDCX India’s largest exchange by trading volume, known for a wide range of crypto pairs
  • WazirX A Binance‑backed platform with a strong focus on Indian users
  • ZebPay One of the oldest Indian exchanges, offering a simple mobile app
  • Mudrex Focuses on crypto‑funds and portfolio management for Indian investors
  • Unocoin Provides crypto‑saving plans and INR‑linked wallets

These platforms not only meet FIU‑IND rules but also offer INR deposits, tax reporting tools, and local customer support. That’s why CoinDCX saw a 2,000 % deposit surge after the bans.

Exchange icons halted by a digital firewall and Indian bank closure.

How the Bans Changed User Behaviour

When the FIU‑IND started blocking foreign sites, Indian traders didn’t just sit idle. Data from early 2024 shows:

  1. CoinDCX’s user base grew by more than 10,000 % in six months.
  2. Mudrex onboarded over 10,000 new users in the first two weeks after the crackdown.
  3. CoinSwitch and BuyUcoin offered cash‑back bonuses to lure users away from banned platforms.

In practice, you’ll notice that most Indian crypto forums now talk about “switching to a compliant exchange” rather than debating which foreign site is best. The migration is the biggest regulatory‑driven shift in India’s crypto history.

Legal and Tax Implications

Even if you can’t use a banned exchange, the Indian tax law still applies to any crypto gains. The government imposes a flat 31.2 % tax on profits, and penalties for under‑reporting can reach 60 % under Section 158BA(7). The good news? FIU‑registered exchanges automatically generate tax‑ready statements, so you don’t have to scrape data yourself.

Non‑compliant platforms often don’t give you proper transaction summaries, which means you’ll have to calculate capital gains manually-a risky and time‑consuming task.

What Happens If You Keep Using a Banned Exchange?

Technically, you can still access a blocked site via VPN, but you face several downsides:

  • Banking issues: Indian banks will refuse INR transfers, leaving you stuck with foreign fiat or crypto only.
  • No legal recourse: If the exchange freezes your account, Indian authorities are unlikely to intervene.
  • Tax headaches: You’ll need to self‑report every trade, increasing the chance of errors.

In short, the safest route is to move to a FIU‑compliant platform as soon as possible.

Traders happily using FIU‑registered Indian crypto apps in a bright market.

Steps to Migrate Safely from a Banned Exchange

  1. Open an account on a FIU‑registered exchange (e.g., CoinDCX).
  2. Complete KYC - you’ll need a PAN card, Aadhaar, and a selfie.
  3. Transfer your crypto to the new platform’s wallet address (use the “deposit” function).
  4. Withdraw any remaining INR from the old exchange to your bank via a third‑party service, if possible.
  5. Delete the old app and disable any saved payment methods.

Following these steps ensures you stay on the right side of the law and keep your funds accessible.

Future Outlook: Will More Exchanges Be Banned?

The FIU‑IND says it will keep monitoring foreign platforms for compliance. The February 1 2025 amendment (Section 285BAA) makes it clear that any exchange registering later will have its past trades exposed to Indian authorities. That means even if an exchange finally registers, it could still face retroactive scrutiny.

Watch for announcements from the FIU‑IND and stay updated on the compliance status of any platform you consider. If a new exchange promises “no registration needed,” treat it with caution.

Quick Checklist for Indian Crypto Traders

  • Verify the exchange is listed on the FIU‑IND registration portal.
  • Check that the platform offers INR deposits/withdrawals.
  • Make sure you get monthly tax reports from the exchange.
  • Stay away from VPN‑only access - it’s a red flag for non‑compliance.
  • Keep copies of all KYC documents for future audits.

Which crypto exchanges are currently banned in India?

As of October 2025, Binance, KuCoin, Coinbase, Bybit, and Crypto.com are blocked because they have not completed FIU‑IND registration.

Can I still trade on a banned exchange using a VPN?

Technically you can, but you’ll face banking blocks, no legal protection, and tax‑reporting complications. It’s far safer to switch to a compliant platform.

What are the top FIU‑registered exchanges for Indian users?

CoinDCX, WazirX, ZebPay, Mudrex, and Unocoin are currently registered, support INR, and provide tax‑ready statements.

How does the 31.2 % crypto tax affect me?

All crypto gains are taxed at a flat 31.2 % with no set‑offs. Using a FIU‑registered exchange gives you a ready‑made tax report, making filing much easier.

What should I do if I already have funds on a banned exchange?

Create an account on a compliant exchange, complete KYC, then withdraw crypto to the new wallet address. If INR withdrawal isn’t possible, consider using a peer‑to‑peer swap or a trusted OTC service.

20 Comments

  • Kevin Johnston
    Kevin Johnston

    This is lit 😎 Crypto in India just went full anime mode.

  • Paul Lyman
    Paul Lyman

    Honestly? I switched to CoinDCX last week and it’s been smooth as butter. No more VPN drama, and the tax reports auto-generate. Life changed.

    Also, ZebPay’s app is stupid simple. Even my grandma uses it.

  • Derajanique Mckinney
    Derajanique Mckinney

    why do ppl still trade crypto? like… its just digital gambling with extra steps 😒

  • Sheetal Tolambe
    Sheetal Tolambe

    I was scared to move my coins after the ban, but the CoinDCX support team walked me through it step by step. Seriously, they even called me on WhatsApp. That’s care.

    Also, the INR deposits hit my account in under 3 mins. Never going back.

  • Pranav Shimpi
    Pranav Shimpi

    People don’t realize how dangerous it is to use unregistered platforms. I had a friend who lost 4.5 lakhs on KuCoin after they froze withdrawals. No recourse. No refund. Just silence.

    FIU’s rules aren’t oppressive-they’re protective. If you’re still using Binance via VPN, you’re not a rebel. You’re a walking target for scammers.

  • gurmukh bhambra
    gurmukh bhambra

    This whole thing is a scam. The government doesn’t want us to be rich. They want us to be poor and obedient. Binance was better. They didn’t ask for Aadhaar. They didn’t track us. Now we’re all just data points in some bureaucrat’s spreadsheet.

  • Sunny Kashyap
    Sunny Kashyap

    India is winning. Foreign apps come here, take our money, give us nothing back. Now we have our own. CoinDCX is Indian. ZebPay is Indian. We support our own. That’s patriotism.

  • Kirsten McCallum
    Kirsten McCallum

    The 31.2% tax is confiscatory. This isn’t regulation-it’s extraction. And now you’re forced to use state-approved platforms? That’s not freedom. That’s digital serfdom.

  • Olav Hans-Ols
    Olav Hans-Ols

    I’m from the US and honestly, I’m kinda jealous. You guys have a clear, enforceable rule. Here, it’s a Wild West mess-some states ban crypto, others encourage it, the IRS sends confusing letters, and nobody knows what’s legal.

    India’s approach is brutal, but at least you know where you stand. No guessing games. No legal gray zones. Just rules. And people are adapting. That’s impressive.

  • Will Barnwell
    Will Barnwell

    You say CoinDCX has 2000% growth? That’s statistically impossible unless they’re inflating numbers. Also, WazirX is owned by Binance. So this whole "Indian alternative" thing is a joke. It’s just rebranded foreign control.

  • Frech Patz
    Frech Patz

    Can anyone confirm if the FIU-IND registration portal is publicly accessible? I’d like to verify the status of a platform I’m considering. I don’t trust third-party lists.

  • Henry GĂłmez Lascarro
    Henry GĂłmez Lascarro

    Let’s be real. This isn’t about money laundering. It’s about control. The government wants to know every single transaction you make. They want to see your portfolio. They want to tax you before you even touch your gains. And now they’re forcing you to use platforms that hand over your data like a Christmas list to Santa.

    They call it "compliance." I call it surveillance capitalism with an Indian accent. The moment you submit your Aadhaar, you’ve surrendered your financial privacy. And you’re proud of it? You’re not a trader-you’re a data point in a state-run ledger.

  • Dr. Monica Ellis-Blied
    Dr. Monica Ellis-Blied

    I find it deeply concerning that the narrative here has been framed as "India is winning" or "patriotism." This isn’t nationalism-it’s authoritarianism disguised as regulation. The erosion of financial autonomy under the guise of "protecting users" is a dangerous precedent. When governments dictate which financial tools you may use, they are not protecting you-they are controlling you.

    Furthermore, the claim that FIU-registered platforms "automatically generate tax reports" is misleading. These platforms are required to report to the government. Your privacy is not preserved-it is institutionalized. And let’s not forget: the tax rate of 31.2% is punitive, not progressive. It penalizes small traders disproportionately. This is not economic policy. It is extraction with a bureaucratic smile.

  • Herbert Ruiz
    Herbert Ruiz

    You say CoinDCX has tax reports? So does Binance. The difference is Binance doesn’t require your biometrics. Also, 2000% growth? That’s not growth-that’s panic migration. People are fleeing, not choosing.

  • jummy santh
    jummy santh

    As a Nigerian, I find this fascinating. In Nigeria, we fight to use Binance because our banks block everything. Here, you ban them to protect your people. Two continents, opposite problems, same goal: financial sovereignty.

    But I must say-your tax rate is brutal. 31.2%? In Nigeria, we pay 10% on capital gains, and we still have more crypto users than you. Maybe regulation should be about inclusion, not restriction.

  • Anna Mitchell
    Anna Mitchell

    I just moved my portfolio to Unocoin yesterday. The interface is so clean, and the customer service actually replied within an hour. I didn’t think I’d feel this good about crypto again after the chaos. Thank you for this guide.

  • Lawrence rajini
    Lawrence rajini

    Bro just use Mudrex if you wanna automate your portfolio 😎 they have AI rebalancing and tax stuff built in. I’m literally sleeping while my crypto grows. No stress. No VPNs. Just chill. 🚀

  • Rosanna Gulisano
    Rosanna Gulisano

    You people are fools for trusting any government platform. You think they care about your taxes? They care about control. You’re just feeding the machine.

  • james mason
    james mason

    I used to think India was behind on crypto. Now I realize they’re ahead. You don’t need 100 exchanges. You need one clean, regulated ecosystem. Binance was never meant for retail users-it was a casino for hedge funds. India just cleaned up the table. Classy.

  • Saurav Deshpande
    Saurav Deshpande

    They say "FIU-registered" but nobody asks who’s behind FIU. Who funds them? Who audits them? What if the government changes hands next year and suddenly your "safe" exchange is flagged as "non-compliant"? This isn’t regulation. It’s a slow-motion nationalization of your assets. You’re not trading crypto-you’re trusting a state-owned bank with a blockchain logo.

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