Crypto Exchanges Banned in India – Understanding the Restrictions

When talking about crypto exchanges banned India, the term refers to digital asset platforms that Indian regulators have prohibited from operating or offering services to Indian users. Also known as Indian crypto ban, this restriction stems from the country's effort to curb unregulated crypto activity while protecting investors.

One major OFAC sanctions, are U.S. measures that target illicit crypto flows and force exchanges worldwide to block certain jurisdictions that intersect with India’s own compliance checks. When a platform runs afoul of these rules, it often faces a dual‑layer of scrutiny: local Indian regulators and international sanction bodies. This creates a complex compliance environment where exchange compliance, the set of policies and technical steps an exchange must adopt to meet legal standards becomes a non‑negotiable requirement.

To break it down, the Indian crypto ban requires every exchange to verify user identity, restrict fiat‑on‑ramp services, and block direct trading for Indian IP addresses. At the same time, OFAC sanctions add an extra layer by demanding that platforms screen for transactions linked to sanctioned entities, which often includes Iranian or Russian wallets. The overlap means that an exchange violating either rule can be shut down, and users may suddenly lose access to their accounts.

How the Ban Shapes the Market and What You Can Do

The ripple effect of these restrictions is clear: many global exchanges either withdraw from India or operate with limited features. Traders looking for alternatives often turn to peer‑to‑peer networks, decentralized exchanges, or VPN‑based workarounds—each carrying its own risk profile. Understanding the regulatory landscape helps you avoid a sudden loss of funds or legal trouble. Keep an eye on compliance updates, as Indian authorities frequently tweak the ban's scope, and watch how international sanctions evolve, especially regarding countries like Iran and North Korea.

Below you’ll find a curated list of articles that dive deeper into specific facets of this topic—ranging from how OFAC sanctions block Iranian crypto traders to detailed reviews of exchanges that have navigated—or failed to navigate—the Indian regulatory maze. Use these resources to gauge which platforms stay compliant, which carry hidden risks, and how you can protect your crypto activity in a tightly regulated environment.