Crypto Exchange Compliance Checker
Check if a crypto exchange is registered with FIU-IND and legally operating in India
Ever tried to log into your favorite crypto platform only to see a blocked page and wonder why India suddenly turned its back on it? The answer lies in a sweeping regulatory crackdown that began in 2022 and intensified in 2024, leaving a clear divide between exchanges that can legally serve Indian users and those that are effectively banned.
Crypto exchange is a service that allows users to buy, sell, or trade digital assets such as Bitcoin, Ethereum, and thousands of alternatives. In India, the legality of a crypto exchange now hinges on a single piece of paperwork: registration with the Financial Intelligence Unit‑India (FIU‑IND). If an exchange hasn't filed that registration, the government can block its website, freeze its bank links, and even penalise its operators.
How the FIU‑IND Ban Works
The Financial Intelligence Unit‑India (FIU‑IND) is the country's anti‑money‑laundering watchdog. Under Section 285BAA of the Finance Bill (effective 1 February 2025), any crypto‑related service must register with FIU‑IND and retain transaction records for up to six years. Non‑compliant platforms face three enforcement actions:
- Website blocking - ISPs are ordered to kill access to the domain.
- Banking restrictions - Indian banks refuse to process INR deposits or withdrawals for the platform.
- Legal penalties - fines in the millions and possible investigation by the Enforcement Directorate (ED).
Because the ban is tied to registration, it applies to both domestic and foreign exchanges. The result? A clear, publicly‑available list of which platforms are off‑limits and which are safe to use.
International Exchanges That Are Currently Banned
Most of the high‑profile foreign platforms failed to meet the FIU‑IND deadline and have been blocked. Below is a snapshot of the biggest names you’ll find on the banned list as of October 2025:
| Exchange | Reason for Ban | Penalty (if any) |
|---|---|---|
| Binance | Failed FIU registration | US$4.5 M fine |
| KuCoin | Unregistered, AML concerns | US$2.2 M fine |
| Coinbase | Pending registration (as of 2025) | - |
| Bybit | Non‑compliant KYC/AML | US$1.8 M fine |
| FTX (now defunct) | Never registered | - |
These platforms are still reachable from abroad, but any Indian IP address will be redirected to a government notice. The exchanges can resume service only after they file the required paperwork and demonstrate ongoing compliance.
Domestic Platforms That Are FIU‑Registered (and Thriving)
While foreign exchanges were being shut down, Indian‑based platforms surged. Because they were already registered or quickly complied, they captured the displaced user base. Here are the top compliant exchanges as of 2025:
- CoinDCX - Deposit growth > 2,000 % since the ban.
- WazirX - Backed by Binance, now fully FIU‑registered.
- ZebPay - One of the oldest Indian exchanges, maintains strict KYC.
- Unocoin - Focuses on Bitcoin and offers tax reporting tools.
- Mudrex - Algorithmic trading platform, added > 10,000 users within weeks of the crackdown.
These platforms now offer INR deposits, direct bank transfers, and integrated tax‑report generation, features that many banned foreign sites could not provide to Indian users.
How to Verify an Exchange’s FIU‑IND Status
Before you move funds, double‑check the registration. The process is simple:
- Visit the official FIU‑IND portal (search “FIU‑IND registered entities”).
- Enter the exchange’s legal name or registration number.
- Confirm the status shows “Registered - Compliant”. A green tick appears next to the name.
- Take a screenshot for your records; the portal updates in real‑time.
Any exchange that does not appear on the list should be considered off‑limits. Even if a site claims compliance, the lack of a FIU‑IND entry means the claim is unreliable.
Practical Impacts for Indian Traders
Switching from a banned platform to a compliant one isn’t just a checkbox exercise. The shift affects liquidity, fees, and tax reporting:
- Liquidity gaps - Banned exchanges often offered deeper order books. Domestic platforms have narrowed the gap, but slippage can still be higher on smaller coins.
- Fee structures - Indian exchanges typically charge 0.1‑0.25 % per trade, comparable to global peers now that they’ve scaled.
- Tax documentation - FIU‑registered platforms automatically generate Form 16‑A‑style statements, simplifying the 31.2 % flat tax filing.
For those who kept assets on a blocked site, the first step is to contact the exchange’s support team. If the platform has shut down, the ED may intervene to retrieve funds, but success varies widely.
Tax and Legal Risks of Using a Banned Exchange
India treats crypto profits as "income from other sources" and taxes them at a flat 31.2 % rate. However, the law also imposes heavy penalties for non‑disclosure:
- Undisclosed gains can lead to a 60 % penalty under Section 158BA(7).
- Failure to retain records for six years may trigger additional fines from FIU‑IND.
- Using a non‑registered exchange could be interpreted as willful evasion, attracting legal scrutiny from the ED.
Because compliant exchanges already collect and store the required transaction data, users benefit from built‑in compliance. On a banned platform, you must manually calculate gains, retain screenshots, and risk missing the statutory retention period.
What to Do If You’ve Already Traded on a Banned Platform
Don’t panic-but act fast. Here’s a step‑by‑step rescue plan:
- Export your trade history. Most exchanges let you download CSV or Excel files. If the site is down, try retrieving data from email confirmations or screenshots.
- Move any remaining INR funds. Attempt a withdrawal to an Indian bank; if blocked, file a complaint with the Consumer Forum and attach proof of registration attempts.
- Report to FIU‑IND. Send a written notice detailing the exchange’s non‑compliance. This creates a record in case the ED opens an investigation.
- Switch to a compliant platform. Open an account with one of the domestic exchanges listed above, complete KYC, and transfer assets.
- Prepare tax filings. Use the exported trade data to calculate gains. If you lack official statements, the FIU‑IND notice can help justify your self‑reported figures.
Following these steps reduces the chance of penalties and puts you back on a legally safe footing.
Future Outlook: Will More Exchanges Be Banned?
Regulators say the current framework is a “baseline” and may tighten further. Possible future moves include:
- Requiring real‑time transaction reporting for all FIU‑registered exchanges.
- Extending the ban to decentralized exchanges (DEXs) that facilitate fiat‑on‑ramp without registration.
- Introducing a tiered licensing system where only exchanges with a certain liquidity threshold can offer leveraged products.
For now, the safe bet is to stick with platforms that have clear FIU‑IND registration and a track record of compliance.
Quick Checklist: Is Your Exchange Safe?
| Check | Yes/No |
|---|---|
| Is the exchange listed on the FIU‑IND registry? | |
| Does the platform provide INR deposit/withdrawal? | |
| Are KYC/AML procedures in line with RBI guidelines? | |
| Does the exchange generate tax‑report statements? | |
| Has the exchange faced FIU penalties in the past year? |
Mark any “No” as a red flag and look for an alternative platform.
Frequently Asked Questions
Which major foreign crypto exchanges are currently banned in India?
As of October 2025, Binance, KuCoin, Bybit, and Coinbase (pending registration) are blocked because they have not completed FIU‑IND registration. These platforms cannot process INR deposits or withdrawals for Indian users.
How can I verify if an exchange is FIU‑registered?
Visit the official FIU‑IND website, use the searchable registry, and look for a green tick next to the exchange’s legal name. Screenshot the entry for future reference.
Can I still trade on a banned exchange if I use a VPN?
Technically a VPN may bypass the website block, but Indian banks will still refuse INR transfers, and you risk violating FIU‑IND guidelines. Using a non‑registered platform can lead to fines and tax penalties.
What are the tax implications of using a compliant exchange?
Profits are taxed at a flat 31.2 % rate. FIU‑registered exchanges automatically generate transaction summaries that match the tax authority’s format, simplifying filing and reducing audit risk.
If I’ve lost funds on a banned platform, is there any recourse?
You can file a complaint with the Enforcement Directorate, but recovery depends on the exchange’s remaining assets and legal jurisdiction. Keeping records and notifying FIU‑IND improves your chances.
Staying on the right side of the law doesn’t mean you have to miss out on crypto opportunities. By choosing a crypto exchanges banned India‑compliant platform, you keep your trades legal, your taxes clear, and your funds reachable.
James Williams, III
September 24, 2025 AT 17:23When you look at the FIU‑IND framework, the first thing to note is the mandatory KYC/AML integration that every exchange must embed into its onboarding stack. The AML engine must flag transactions over the ₹1 million threshold and generate SARs (Suspicious Activity Reports) in real time. Compliance teams also need to retain a full audit trail for six years, which means every order book event is logged to an immutable ledger. On top of that, the FIU‑IND registration requires a binding MoU that outlines data‑sharing protocols with the Enforcement Directorate. Because the regulator operates under Section 285BAA, any deviation triggers an automatic website block via ISP level DNS filtering. The banking choke‑point is equally unforgiving: Indian banks run a real‑time API check against the FIU list before allowing any INR settlement. If the exchange is not on the whitelist, the transaction is rejected and the user sees a generic “service unavailable” notice. Penalties are steep – fines range from $1 million to $5 million, plus potential criminal prosecution for willful evasion. That’s why platforms like CoinDCX and WazirX rushed through the registration, integrating a compliance‑as‑code pipeline to push updates without downtime. Their tech stacks now include automated compliance modules that pull the FIU registry hourly, ensuring they stay green‑lit. For traders, the practical impact is that you’ll see a green tick next to the exchange name on the FIU portal, and you can screenshot it for your records. If you ignore this and use a blocked service, you risk not only loss of access but also a 60 % penalty on undisclosed gains under Section 158BA(7). The tax side is more straightforward: FIU‑registered exchanges auto‑generate Form 16‑A‑style statements that match the income‑tax department’s schema. This dramatically reduces the chance of an audit because the data is already reconciled with your bank statements. Meanwhile, the crypto community is building open‑source tools to monitor FIU updates, keeping everyone informed. In short, the regulatory environment has forced a convergence of fintech and compliance engineering, and the exchanges that adapted quickly are the ones thriving in India’s market today.
Patrick Day
September 25, 2025 AT 07:17They’re pulling the strings behind the curtain, making us think it’s just about money. The real agenda is about controlling every digital transaction we make.
Ryan Steck
September 25, 2025 AT 21:10Yo stop trippin, it’s just a govt play to scare us.
Ty Hoffer Houston
September 26, 2025 AT 11:03I get why people feel uneasy when a regulator steps in, but it’s also a chance for homegrown platforms to shine. Indian exchanges have been able to tailor their services to local banking quirks, which foreign sites often ignore. That local focus brings better customer support and faster INR deposits. Plus, the community vibe around platforms like CoinDCX feels more personal, which can be a big plus for new traders.
john price
September 27, 2025 AT 00:57if you think this is just a simple reguIlation its actually a deep leagal overhaed that forces us to re think our investmnt stragegy. the impending fines are huge and the administration will not be lenient.
Lindsey Bird
September 27, 2025 AT 14:50Oh, the drama of watching your favorite exchange get taken down! It’s like watching a blockbuster get canceled at the last minute. The suspense, the fear, the heartbreak – all in one fell swoop. And then you’re left scrolling forums for a lifeline.
Tiffany Amspacher
September 28, 2025 AT 04:43Existential crisis meets crypto ban, classic.
BRIAN NDUNG'U
September 28, 2025 AT 18:37Esteemed traders, let us embrace the regulatory shift as an impetus for disciplined growth. By aligning with FIU‑registered platforms, you secure both legal compliance and operational stability. This alignment allows you to focus on strategic asset allocation rather than fearing abrupt service interruptions. Moreover, the enhanced KYC standards foster trust among institutional participants, catalyzing market liquidity. Therefore, I encourage you to transition promptly and view this as a cornerstone of professional portfolio management.
Donnie Bolena
September 29, 2025 AT 08:30Wow, what a turnaround! The crypto scene in India is evolving faster than ever, and each new regulation brings fresh opportunities, challenges, and excitement, all at once! Keep your eyes peeled, stay informed, and remember that adaptability is the key to thriving in this dynamic market!
Elizabeth Chatwood
September 29, 2025 AT 22:23i think its cool that the indian exchanges are finally getting legit they provide real tax docs and easy inr deposits its a win for everyone
Tom Grimes
September 30, 2025 AT 12:17It feels like the whole crypto world is a big roller coaster that never stops moving. When you hear about a new ban, your heart jumps and you wonder what to do next. The truth is, the simple answer is to keep your records and move to a platform that follows the rules. You don’t need a PhD in law to understand that compliance protects your money. Just take a screenshot of the FIU page and store it somewhere safe. Then, transfer your assets slowly to avoid big losses. In the end, staying calm and organized will save you a lot of stress.
Paul Barnes
October 1, 2025 AT 02:10Sure, the “great reset” narrative is just a myth, but questioning authority never hurts. Keep an open mind, but verify facts.
John Lee
October 1, 2025 AT 16:03I appreciate the diverse perspectives shared here, and I think we can all learn from each other’s experiences. The regulatory environment may feel restrictive, but it also pushes us toward better security and transparency. By collaborating across borders, we can develop tools that alert users to FIU status changes in real time. Let’s keep the dialogue constructive and help newcomers navigate safely.
Jireh Edemeka
October 2, 2025 AT 05:57Oh, absolutely, because nothing says “freedom” like a government‑issued green tick. Your compliance checklist is the new holy grail, isn’t it? Still, at least the process is clearly documented.