🇮🇳 Crypto licence in India

The regime

India has no crypto licensing regime. Exchanges and other VASPs register with the Financial Intelligence Unit (FIU-IND) for AML purposes — mandatory since March 2023 under PMLA coverage — and operate under a 30% tax on gains and 1% TDS on transfers. Policy remains registration-plus-taxation rather than authorisation.

The FIU has enforced the perimeter against offshore exchanges, blocking non-compliant platforms and bringing global firms into registration. A discussion paper on fuller regulation has been repeatedly deferred; the 1% TDS continues to push volume offshore or into grey channels.

Requirements

• FIU-IND registration as a reporting entity under the Prevention of Money Laundering Act.
• KYC/AML programme: customer verification, record-keeping, suspicious-transaction reporting to FIU-IND, and Travel Rule compliance.
• Tax mechanics: collection of 1% TDS on virtual digital asset transfers and reporting; customers' gains taxed at 30% with no loss offset.
• No prudential licence exists — there are no capital, custody or conduct requirements beyond AML registration.

Licensed firms

FIU-registered platforms include:

• Binance — registered with FIU-IND in 2024 after enforcement action
• Coinbase — registered with FIU-IND in 2025
• CoinDCX, CoinSwitch, ZebPay — domestic registered exchanges

Snapshot, not the register: verify current status against FIU-IND registered VASP list before relying on it.

Is crypto legal in India?

Yes — trading and holding are legal, taxed at 30% on gains plus 1% TDS on transfers. What India lacks is a licensing regime: platforms only need FIU-IND AML registration, with no capital or custody rules.

Can offshore exchanges serve Indian users?

Only if registered with FIU-IND. The FIU has blocked non-compliant offshore platforms since late 2023, and both Binance and Coinbase subsequently registered.