Is a Crypto Exchange Legal in India? How to Check One

Short answer: India does not ban buying, holding or trading crypto-assets (its tax law calls them “virtual digital assets”, or VDAs), but no regulator licenses crypto exchanges. The only registration that exists is with FIU-IND, the financial intelligence unit, under the anti-money-laundering law (PMLA), and the Government has told Parliament that FIU-IND has deliberately not published the list of registered exchanges because a public list “may create the impression that registered entities are licensed, approved, or endorsed by the government”. So “is this exchange legal” has a narrow answer: check whether it is registered with FIU-IND, and understand that registration is a compliance status, not protection for your money. Gains are taxed at a flat 30%, and a transfer attracts 1% TDS.

General consumer information, not legal advice or tax advice. Checked against a Lok Sabha answer of 30 March 2026, RBI and CBDT documents on 12 October 2026. This guide does not rate or accuse any exchange; it explains how to check one.

The key facts and figures

Is it legal?

The Supreme Court’s judgment of 4 March 2020 in Internet and Mobile Association of India v. Reserve Bank of India set aside the RBI circular of 6 April 2018 that had barred banks from serving crypto businesses, holding it disproportionate. Since then India has chosen to tax and track the sector rather than ban it: a dedicated tax charge since 2022, and PMLA obligations on service providers since March 2023. Holding and trading are therefore not prohibited, but the Reserve Bank’s position has not changed in one important respect. In a press release of 1 February 2017 it said that it “has not given any licence / authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency” and that anyone dealing in virtual currencies does so “at their own risk”. Nothing in this guide should be read as a statement that crypto is safe, approved or guaranteed.

What FIU-IND registration is, and what it is not

Registration with FIU-IND means the provider has signed up as a reporting entity under the anti-money-laundering law and is expected to follow the FIU’s guidelines, including reporting specified and suspicious transactions. On 30 March 2026 the Minister of State for Finance told Lok Sabha (Unstarred Question 5805) that the registration database is “primarily meant for Law Enforcement Agencies (LEAs) and supervisory purposes”, and that publishing a list “could mislead users into assuming regulatory protection or recourse in case of fraud or loss”. In plain terms:

• FIU registration is not a licence, an approval or an endorsement.
• It is not a guarantee that your deposits are safe or that you can complain to a regulator if the exchange fails or disappears.
• It is a sign that the provider is inside, not outside, the Indian anti-money-laundering framework.

How to check an exchange

1. Look for the registration in the Parliament list. Annexure I of the Lok Sabha answer of 30 March 2026 lists the 54 VDA service providers registered with FIU-IND as on 9 March 2026, with the registered entity name, trade name and country. It is a snapshot, not a live register: it marks some entries “Not Operational/Winded up operation as per submission of Reporting Entity” and some “Conditionally On-boarded”, and anything registered or struck off later will not appear. The question and answer can be found on sansad.in by number (Lok Sabha Unstarred Question 5805).
2. Read the FIU-IND guidance yourself. The FIU-IND website (fiuindia.gov.in) hosts the “AML & CFT Guidelines for Reporting Entities Providing Services Related to Virtual Digital Assets”, updated on 8 January 2026, and the circular on registration of VDA service providers, revised on 15 September 2025. The Government says the registration framework is prescribed there.
3. Check the Indian entity. If the exchange operates in India through a company, look up that company in the MCA master data (mca.gov.in) and check the name, status and address against what the app shows. See how to research a company and the website legitimacy checklist.
4. Check that it is not on the takedown list. Annexure II of the same answer lists offshore VDA service providers whose applications and URLs FIU-IND directed to be taken down for operating illegally in India without complying with PMLA.
5. Be wary of the rest. Treat as a warning sign any platform that promises fixed or guaranteed returns, asks you to install an app from a link in a chat message, tells you to pay into a personal account, or can only be reached on a messaging app. Under the rules of the Advertising Standards Council of India, crypto advertisements must carry the disclaimer “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”

Tax, in short

The 30% tax under section 115BBH of the Income-tax Act, 1961 applies to income from the transfer of a VDA, with no deduction other than the cost of acquisition and no set-off of losses. Section 194S requires 1% TDS on the payment for a transfer of a VDA, effective 1 July 2022; CBDT Circular No. 13 of 2022 (22 June 2022) sets out the guidelines, including the ₹50,000 and ₹10,000 thresholds in the table. The Income-tax Act, 2025 took effect on 1 April 2026 and renumbered the provisions of the 1961 Act; published guidance maps these two rules to new section numbers while keeping the 30% rate and 1% TDS rate. Check the current section and your own position for FY 2026-27 before filing, and speak to a chartered accountant for anything beyond the basics.

If something goes wrong

If a platform has taken your money and vanished, or you were drawn into a “crypto investment” scheme, treat it as a financial fraud: call 1930, file at cybercrime.gov.in and tell your bank in writing, then follow what to do after an online trading or investment scam. Do not pay a “withdrawal fee” or a “tax” to release funds. For checking a stock broker or adviser, which is a different, properly licensed regime, see how to check a SEBI-registered broker. Related: UPI payments to scammers and the complaint directory.

More in this series on scams and recovery: fake customer care number scams and fake job offer and task scams.

Frequently asked questions

Is crypto legal in India?

It is not banned. The Supreme Court set aside the RBI’s 2018 banking restriction in March 2020, and the sector is now taxed and covered by anti-money-laundering rules. But there is no licensing regime for exchanges, and the RBI has said it has not authorised anyone to deal in virtual currencies and that dealing is at the user’s own risk.

How do I know if a crypto exchange is registered in India?

Registration here means registration with FIU-IND as a reporting entity under the PMLA. FIU-IND has not published a public list; the Government answered “No” when asked in Parliament whether a public portal exists. A snapshot list of 54 registered providers as on 9 March 2026 was tabled in Lok Sabha on 30 March 2026, and you can check an exchange against it while remembering that it will not show later changes.

Does FIU-IND registration mean the exchange is safe or approved?

No. The Government told Parliament that publishing a list could create the impression that registered entities are licensed, approved or endorsed, and could mislead users into assuming regulatory protection or recourse in case of fraud or loss. Registration is an anti-money-laundering compliance status.

How much tax do I pay on crypto in India?

Income from the transfer of a VDA is taxed at a flat 30% under section 115BBH of the 1961 Act, with only the cost of acquisition deductible and no set-off of losses. A 1% TDS applies on payment for transfers under section 194S, subject to thresholds of ₹50,000 for specified persons and ₹10,000 for others in a financial year. The 2025 Act, in force from 1 April 2026, renumbers these provisions.

Is an offshore crypto exchange legal to use from India?

FIU-IND has directed the takedown of the apps and URLs of 53 VDA service providers found to be operating in India without complying with PMLA, and the Government tabled the list in Parliament. Using any platform that has not registered with FIU-IND while serving Indian users leaves you without even the minimum compliance framework, and you should assume you have no recourse if it fails.

Where do I complain if I lose money on a crypto platform?

If it was fraud, call 1930, file at cybercrime.gov.in and report to your bank. There is no dedicated crypto regulator to complain to, and the Government has said a public registration list could mislead users about recourse in case of fraud or loss, so do not assume a complaint route exists because an exchange is registered.