Best crypto exchange in India: check FIU-IND registration first
For crypto traders in India: exchanges must register with FIU-IND under PMLA, and VDA gains face a 30% tax plus 1% TDS. How to check a platform first.
Only providers that are licensed to serve residents of India are ranked. How we rank.
The best crypto exchange in India is one that is registered with the Financial Intelligence Unit (FIU-IND) as a reporting entity, because registration is the legal starting point for any platform that lets you buy and sell crypto in India. On 23 October 2026 we could not confirm an FIU-IND registration for any of the exchanges we review, so we don’t rank one. This page explains the rules, the tax you pay and how to check a platform before you sign up.
Which is the best crypto exchange in India?
The best crypto exchange in India for you is a registered platform whose costs, INR deposits and withdrawals, and customer support you have checked yourself. FIU-IND registration comes first, because a platform that isn’t registered is in breach of anti-money-laundering law.
None of the global exchanges in our data shows an FIU-IND registration. Binance’s licences page lists only three Abu Dhabi entities, and Bybit has been fined in India for operating without registration (more on that below). Indian exchanges aren’t in our data at all, so we can’t confirm their status either. Use the checklist further down on any platform you’re considering.
How crypto exchanges are regulated in India
Crypto exchanges in India are regulated for anti-money-laundering purposes under the Prevention of Money-laundering Act, 2002 (PMLA), supervised by FIU-IND. A government notification of 7 March 2023 brought five activities under PMLA when they are carried out for customers as a business:
- exchange between virtual digital assets (VDAs) and fiat currencies, such as INR;
- exchange between one or more forms of VDAs, for example bitcoin and other crypto;
- transfer of VDAs;
- safekeeping or administration of VDAs, or of the instruments that control them; and
- financial services related to an issuer’s offer and sale of a VDA.
FIU-IND’s notice of 4 July 2023 spells out what this means for crypto exchanges. They must run customer due diligence, keep records, maintain internal controls, train staff and file suspicious transaction reports with FIU-IND. Registration with FIU-IND is a prerequisite, and failure to register is itself non-compliance that attracts action under section 13(2) of PMLA.
The same notice asks registering platforms for their filings on TDS for VDA transactions and for any arrangement with an exchange based in India or outside India. For you, this means a registered exchange will ask for KYC verification before you start trading. Our KYC explainer shows what that usually involves.
How crypto is taxed in India: 30% tax and 1% TDS
Crypto gains in India are taxed under a separate regime for virtual digital assets, introduced in the 2022 Budget. The headline numbers are a 30% tax on income from transferring crypto and a 1% TDS on payments for crypto transfers.
According to the Budget 2022–23 memorandum:
- 30% tax (section 115BBH): income from transferring a VDA is taxed at 30%, from assessment year 2023-24.
- No deductions: you can deduct only the cost of acquisition, not other expenses such as fees.
- No loss set-off: a loss on one crypto can’t be set off against other income, and it can’t be carried forward to later years.
- 1% TDS (section 194S): tax is deducted at 1% on payments for VDA transfers to a resident, from 1 July 2022.
- Thresholds: no TDS where the total paid in a financial year stays under ₹50,000 for “specified persons” (broadly, individuals and HUFs without business income or below set turnover limits) or ₹10,000 for others.
A worked example: if you buy crypto for ₹1,00,000 and sell it for ₹1,20,000, the ₹20,000 gain is taxed at 30%, which is ₹6,000. If you made a ₹10,000 loss on another coin in the same year, you still pay tax on the ₹20,000. Tax law can change, so confirm the current rules with the Income Tax Department or a tax adviser.
How do you check a crypto exchange before you sign up?
You check an exchange in India by asking for its FIU-IND registration and testing how it handles your money before you deposit much. It takes about ten minutes.
- Find the legal entity. Look in the terms of use for the company that would hold your account and your INR. A brand name alone isn’t enough.
- Ask for the FIU-IND registration. Ask support for the platform’s reporting-entity registration with FIU-IND. FIU-IND’s homepage doesn’t show a public list, so a platform that can’t answer clearly is a red flag.
- Check FIU-IND’s notices. The FIU-IND website publishes notices for reporting entities, including the July 2023 notice on registering crypto service providers.
- Check TDS handling. Ask how the platform deducts and reports 1% TDS on your trades, and where you’ll find the statements for your tax return.
- Test deposits and withdrawals. Start with a small INR deposit and a small withdrawal to your bank before you move larger amounts.
- Secure your crypto. Turn on two factor authentication, and move long-term holdings to self-custody if you’re comfortable managing your own keys.
What to look for before you trade with an exchange
Once registration checks out, compare platforms on the things that cost you money or time. These matter more than headline claims about registered users or trading volume.
- Total cost: trading fees, the spread on instant buys, and deposits and withdrawals in INR. A low trading fee can hide a wide spread.
- Spot trading vs futures trading: spot trading means you own the crypto. Futures and other leveraged products are far riskier: most retail traders lose money with them, and you can lose everything you put in.
- Customer support: how fast and in which languages, and how complaints are handled.
- Security: two factor authentication, withdrawal address allow-lists and clear information about how your crypto is stored. Our security guide covers the basics.
Offshore crypto exchanges and enforcement
Offshore crypto exchanges that serve users in India without registering with FIU-IND are in breach of PMLA, and FIU-IND has acted against them. India’s FIU fined Bybit Fintech Limited ₹9.27 crore for operating without the mandatory registration, and Bybit’s websites had been blocked in India.
If a platform you use is blocked or stops serving India, you may struggle to withdraw INR or move your crypto out. That is a reason to check registration before you deposit, not after.
Buy crypto in India or in Europe?
If you live in India, the FIU-IND checks and tax rules on this page apply to you. If you move to the EU, a different rulebook applies: crypto exchanges need a MiCA licence, which you can check in ESMA’s register. Our crypto regulation explainer covers the basics, and our Netherlands page ranks MiCA-licensed exchanges for Dutch residents.
Questions people ask
Which is the best crypto exchange in India?
The best crypto exchange in India is one registered with FIU-IND as a reporting entity, with clear INR deposits and withdrawals and fees you understand. We couldn't confirm an FIU-IND registration for any exchange we review, so we don't rank one.
Is crypto legal in India?
India regulates and taxes crypto rather than banning it. Since March 2023, crypto exchanges and other virtual digital asset service providers fall under the Prevention of Money-laundering Act and must register with FIU-IND, and the 2022 Budget introduced a separate tax regime for virtual digital assets.
How much tax do I pay on crypto in India?
The rules introduced in the 2022 Budget tax income from transferring crypto at 30%, with no deduction except the cost of acquisition and no set-off of losses. A 1% TDS applies to payments for crypto transfers from 1 July 2022. Check the Income Tax Department for the current rules.
Can I use an offshore crypto exchange in India?
FIU-IND says registration is a prerequisite for crypto service providers, and failing to register attracts action under section 13(2) of PMLA. India's FIU fined Bybit Fintech ₹9.27 crore for operating without registration, and its websites had been blocked in India.
How do I check if a crypto exchange is registered with FIU-IND?
Ask the exchange for its FIU-IND reporting-entity registration and the legal entity that would hold your account. FIU-IND's homepage doesn't show a public list of registered providers, so treat a platform that can't answer as a red flag.