Asher Draycott Oct
12

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

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

FIU-IND Compliance Checker

Check if a crypto exchange is compliant with India's Financial Intelligence Unit-India (FIU-IND) registration requirements. Enter an exchange name to verify its status for Indian users.

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.

Night city scene showing blocked crypto exchange logos behind a digital barrier.

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.

Banned vs. Compliant Crypto Exchanges for Indian Users
Exchange Status Reason for Ban FIU Registration Availability to Indian Users
Binance Banned Failed to complete FIU registration; pending penalty No Blocked - INR deposits and withdrawals disabled
KuCoin Banned Non‑compliant KYC/AML processes No Blocked - website inaccessible from Indian IPs
Coinbase Banned Did not file FIU registration by deadline No Blocked - no INRs support
Bybit Banned Penalties for AML violations; FIU registration pending No Blocked - payment gateway rejections
Kraken Banned Did not meet FIU data‑retention standards No Blocked - domain filtered
Bitfinex Banned Historical AML concerns; no FIU licence No Blocked - fiat on‑ramps disabled
Gemini Banned Failure to submit required reporting to FIU No Blocked - API access revoked
CoinDCX Compliant - Yes Fully operational - INR deposits/withdrawals
WazirX Compliant - Yes Fully operational - INR deposits/withdrawals
Mudrex Compliant - Yes Fully operational - INR deposits/withdrawals
ZebPay Compliant - Yes Fully operational - INR deposits/withdrawals
Unocoin Compliant - Yes Fully operational - INR deposits/withdrawals

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.

Happy traders at colorful stalls using compliant Indian crypto exchanges.

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.

Frequently Asked Questions

Which crypto exchanges are currently banned for Indian users?

As of October2025, Binance, KuCoin, Coinbase, Bybit, Kraken, Bitfinex and Gemini are blocked because they lack FIU‑IND registration. These platforms cannot process INR deposits or withdrawals for Indian residents.

How can I check if an exchange is FIU‑registered?

Look for the FIU seal on the exchange’s homepage and note the registration number. Then visit the official FIU‑IND portal and search that number to confirm the licence is active.

What happens to my crypto if I’m on a banned exchange?

You can still hold the crypto on the exchange’s wallet, but you won’t be able to move INR in or out. To access your funds, you’ll need to transfer the crypto to a compliant exchange that supports deposits from your wallet.

Is crypto trading illegal in India?

No. Trading is legal as long as the exchange is FIU‑registered and you comply with tax reporting. The government has not imposed a blanket ban on cryptocurrencies themselves.

Can foreign exchanges resume services in India?

Yes, if they complete the FIU registration process, meet the six‑year data‑retention rule, and align their KYC/AML procedures with Indian standards. Once approved, they can offer INR on‑ramps again.

Asher Draycott

Asher Draycott

I'm a blockchain analyst and markets researcher who bridges crypto and equities. I advise startups and funds on token economics, exchange listings, and portfolio strategy, and I publish deep dives on coins, exchanges, and airdrop strategies. My goal is to translate complex on-chain signals into actionable insights for traders and long-term investors.

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17 Comments

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    Annie McCullough

    October 12, 2025 AT 08:05

    While the mainstream narrative paints FIU compliance as the ultimate litmus for legitimacy, one could argue that the heavy‑handed licensing regime actually stifles cross‑border liquidity synergies and creates a compliance‑centric echo chamber :)

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    Carol Fisher

    October 18, 2025 AT 02:58

    India’s sovereign right to safeguard its financial ecosystem should never be compromised by foreign exchanges that sidestep our tax code 🇮🇳💪

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    Melanie Birt

    October 23, 2025 AT 21:51

    First, always locate the FIU seal on the homepage of the exchange; it’s typically displayed near the footer. Second, note the registration number that accompanies the seal. Third, visit the official FIU‑IND portal and enter that number in the search field. Fourth, verify that the status reads “registered” and that the expiry date is current. Fifth, confirm that the exchange offers INR deposit and withdrawal options via UPI, NEFT or IMPS. Sixth, check the KYC/AML documentation to ensure it aligns with Indian regulations. Seventh, examine whether the platform retains transaction data for the mandated six‑year period. Eighth, look for a transparent fee schedule, as hidden charges often signal compliance shortcuts. Ninth, read recent user reviews concerning fund withdrawals, as delays can indicate underlying regulatory issues. Tenth, assess the security features such as two‑factor authentication and cold‑storage ratios. Eleventh, ensure the exchange provides a tax‑reporting tool, which simplifies filing your crypto earnings. Twelfth, keep a personal copy of all trade statements for at least six years. Thirteenth, stay updated with FIU announcements, because the regulatory landscape can shift quickly. Fourteenth, if you ever encounter an error while funding, double‑check whether the exchange’s FIU status has changed. Fifteenth, consider diversifying across multiple compliant platforms to mitigate risk. Lastly, always retain the original registration documentation in case of an audit. Following this checklist will keep you on the right side of the law and protect your assets :)

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    Lady Celeste

    October 29, 2025 AT 15:45

    These bans expose the regulatory overreach.

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    Jon Asher

    November 4, 2025 AT 10:38

    Hey folks, if you’re looking for a hassle‑free way to trade, stick with the platforms that have the FIU seal – they’ll save you a lot of headaches.

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    Leynda Jeane Erwin

    November 10, 2025 AT 05:31

    Dear community, it is imperative to acknowledge the statutory obligations imposed by the Financial Intelligence Unit; however, let’s be real – nobody wants to jump through endless paperwork, right?

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    Brandon Salemi

    November 16, 2025 AT 00:25

    Check the FIU badge before you deposit; it’s the quickest gatekeeper for a smooth experience.

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    Siddharth Murugesan

    November 21, 2025 AT 19:18

    i cant beleive how many ppl still try to use binance from india its just a waste of tim he site is blockd and you cant even pull out inr

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    Ben Parker

    November 27, 2025 AT 14:11

    🚀 Quick tip: always verify the registration number on FIU‑IND’s portal before you fund any exchange! 🌟

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    Daron Stenvold

    December 3, 2025 AT 09:05

    It is with a profound sense of responsibility that I advise all traders to prioritize compliance; the ramifications of ignoring FIU directives can be both financially and legally catastrophic.

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    hrishchika Kumar

    December 9, 2025 AT 03:58

    Imagine a bustling market where every stall proudly displays its license – that’s the vision Indian crypto exchanges are painting, and it’s a vibrant tapestry of trust and innovation.

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    Nina Hall

    December 14, 2025 AT 22:51

    Stay upbeat, friends! The crypto arena in India is evolving, and the compliant platforms are laying down a bright runway for us all.

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    Mureil Stueber

    December 20, 2025 AT 17:45

    Make sure the exchange lists its FIU number check the site directly and keep a copy for your records

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    Emily Kondrk

    December 26, 2025 AT 12:38

    Behind the official statements lies a shadow network of offshore entities pulling strings; the “bans” are merely a smokescreen to divert attention from deeper monetary control mechanisms.

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    Leo McCloskey

    January 1, 2026 AT 07:31

    Well, the whole FIU registration thing, while ostensibly a safeguard, frankly adds another bureaucratic layer, a cumbersome compliance overhead, that could stifle innovation, yet some argue it’s necessary, but is it truly effective?

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    arnab nath

    January 7, 2026 AT 02:25

    Obviously the regulators missed the memo on crypto freedom.

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    Nathan Van Myall

    January 12, 2026 AT 21:18

    The data actually shows that unregistered platforms still process significant volumes, indicating a gap between policy and practice.

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