India’s Banned Crypto Exchanges: Full List & Why They’re Blocked

Key Takeaways

• All crypto exchanges must register with the Financial Intelligence Unit‑India (FIU‑IND) to operate legally.
• International platforms like Binance, KuCoin, Coinbase and Bybit are currently barred for non‑compliance.
• Domestic exchanges such as CoinDCX, WazirX, Mudrex, ZebPay and Unocoin remain fully functional and FIU‑registered.
• Non‑FIU exchanges face website blocks, banking restrictions and possible penalties up to 60% of undisclosed gains.
• Indian traders should verify FIU registration, keep detailed tax records, and use compliant exchanges to avoid service interruptions.

When you hear the phrase banned crypto exchanges India refers to any cryptocurrency trading platform that the Indian government has prohibited from serving Indian users because it failed to register with the Financial Intelligence Unit‑India (FIU‑IND), the immediate question is: which platforms are actually off‑limits, and why? This guide walks you through the regulatory backdrop, lists every exchange currently barred, explains the penalties they face, and shows how you can stay on the right side of the law while trading crypto in India.

Regulatory backdrop in India

The crackdown started with the Reserve Bank of India’s April62018 circular that prohibited banks and other regulated entities from dealing with virtual currencies. Although the Supreme Court struck down the blanket ban in 2020, the government kept a tight grip by mandating that all crypto exchanges must obtain a licence from the Financial Intelligence Unit‑India (FIU‑IND). Failure to register means the exchange cannot legally accept Indian rupee deposits, partner with Indian banks, or offer its services to Indian residents.

In February2025 the Finance Bill introduced Section285BAA, which requires FIU‑registered exchanges to retain transaction data for up to six years and makes the compliance retroactive. Any platform that registers after this date must also disclose historical trades, creating a powerful deterrent for non‑compliant operators.

How the ban is enforced

Enforcement is a multi‑layered effort:

1. Website blocking: The Ministry of Electronics and Information Technology (MeitY) can order ISPs to block domain names that operate without FIU approval.
2. Banking restrictions: Indian banks refuse to process INR deposits or withdrawals for non‑FIU exchanges, effectively cutting off fiat on‑ramps.
3. Legal penalties: The Enforcement Directorate (ED) can levy fines up to 60% of undisclosed earnings under Section158BA(7) of the Income Tax Act.

These actions mean that even if a foreign exchange still technically exists, Indian users will see error messages when trying to fund their accounts, and many payment gateways simply refuse to forward transactions.

Current list of banned exchanges

The following table captures the status of the most prominent platforms as of October2025. An exchange marked “Banned” has been blocked for Indian users because it lacks FIU‑IND registration.

Impact on the banned platforms

Non‑FIU exchanges have suffered a cascade of problems:

• Financial penalties: Binance and Bybit each paid multi‑million‑dollar fines to avoid further legal action.
• User migration: CoinDCX reported a 2,000% surge in deposits within weeks of the bans, while Mudrex added 10,000+ new users.
• Banking freeze: Indian banks have closed accounts linked to these platforms, leaving traders unable to move INR in or out.
• Reduced support: Customer‑service response times slowed dramatically, and many users reported “account suspended” notices without clear recourse.

For traders who kept funds on a blocked exchange, the practical fallout was loss of access to wallets and difficulty withdrawing crypto. While moving assets to a compliant exchange is technically possible, the process can be hampered by frozen fiat links and lack of KYC verification on the banned platform.

Compliant Indian exchanges you can trust

Domestic platforms have stepped up to fill the void. All of them are registered with FIU‑IND, maintain six‑year data retention, and provide INR‑centric on‑ramps.

• CoinDCX: Offers over 300 crypto pairs, deep liquidity, and a robust mobile app. Deposits can be made via UPI, IMPS, and NEFT.
• WazirX: Integrated with Binance’s global liquidity pool, supports staking, and provides a simple UI for beginners.
• Mudrex: Focuses on crypto‑based investment strategies, including algorithmic portfolios and thematic baskets.
• ZebPay: One of the oldest Indian exchanges, known for strong security and a built‑in tax‑report generator.
• Unocoin: Provides a straightforward buy‑sell interface and a recurring purchase (SIP) feature for regular investors.

All of these exchanges publish their FIU registration numbers on their websites, and they regularly update users about regulatory changes. When choosing a platform, check the FIU badge and verify the registration ID on the official FIU‑IND portal.

Practical steps for Indian crypto traders

To stay safe and compliant, follow this checklist:

1. Verify FIU registration: Look for the FIU seal on the exchange’s homepage and cross‑check the registration number on the FIU‑IND website.
2. Use INR on‑ramps: Deposit and withdraw only through bank‑linked methods (UPI, NEFT, IMPS) offered by compliant exchanges.
3. Maintain records: Export monthly trade statements and retain them for at least six years for tax audits.
4. Report gains: Apply the flat 31.2% tax on crypto profits when filing your income tax return. Include the FIU‑registered exchange’s tax report if they provide one.
5. Avoid DEX shortcuts: Decentralised exchanges are not covered by FIU rules, but using them can still attract retroactive scrutiny if you move large volumes to Indian bank accounts.
6. Watch for updates: The government may tighten rules further, so subscribe to newsletters from trusted exchanges or the FIU‑IND alerts.

By sticking to FIU‑registered platforms, you reduce the risk of sudden service loss, legal penalties, and the headache of moving funds across borders.