India Crypto Ban: What’s Really Banned and What You Can Still Do

When people say there’s an India crypto ban, a common misunderstanding about India’s approach to cryptocurrency regulation, they’re mixing up a few things. The truth? India never outlawed owning or trading crypto. What got shut down were unregistered crypto exchanges—platforms that didn’t follow the new rules set by the Financial Intelligence Unit (FIU-IND). This isn’t a ban on Bitcoin or Ethereum. It’s a licensing requirement. If you’re using an exchange that didn’t apply for registration by the deadline, it got blocked. But if it’s registered, you’re still good to go.

Related to this are FIU-IND registration, India’s mandatory compliance system for crypto businesses to report transactions and verify users, and crypto exchanges banned in India, specific platforms that lost their ability to operate locally because they skipped the registration process. These aren’t random targets. Binance India, CoinSwitch Kuber, and others were forced to shut down their local operations because they didn’t submit the required documents—KYC, AML policies, and proof of financial stability. Meanwhile, CoinDCX, WazirX, and ZebPay stayed open because they followed the rules. The government didn’t want to stop crypto. It wanted to track it.

And here’s the real twist: many users still trade crypto in India using peer-to-peer platforms like LocalBitcoins or Paxful. They’re not banned because they don’t operate as exchanges—they’re just marketplaces connecting buyers and sellers directly. No central server. No registered entity. That’s why the government’s focus has been on exchanges, not individuals. If you’re holding Bitcoin in your wallet, you’re not breaking any law. If you’re using an unregistered app to buy it, you’re risking your funds.

The crypto regulation India, the evolving legal framework that requires crypto businesses to register with FIU-IND and comply with anti-money laundering rules is still developing. There’s no tax on holding crypto yet, but you must report gains when you sell. The RBI hasn’t blocked banks from serving registered crypto firms, and many banks now work with CoinDCX and others. The crackdown wasn’t about stopping innovation—it was about bringing order. Those who followed the rules survived. Those who ignored them vanished.

What you’ll find below are clear, no-fluff breakdowns of exactly which exchanges got shut down, why they failed to register, and which ones you can trust today. We’ll show you how to check if a platform is FIU-IND registered, what red flags to spot before depositing money, and how Indian traders are adapting to the new system. No speculation. No fearmongering. Just facts you can use to stay safe and legal.