Key Takeaways
- 15 international crypto exchanges have filed registration with India’s FIU.
- 7 exchanges have been approved, while the status of others remains unclear.
- FIU also listed 25 platforms still operating without registration.
For years, India’s crypto landscape has been a paradox: one of the world’s largest markets by adoption, yet one of the toughest places for global exchanges to operate.
That reality shifted in 2023 when New Delhi quietly rewrote the rules of the game.
By amending the Prevention of Money Laundering Act (PMLA), regulators made it mandatory for any crypto exchange serving Indian users—whether based in Mumbai or Malta—to register with the Financial Intelligence Unit-India (FIU-IND).
The message was clear: play by India’s rules or get out.
Within weeks, giants like Binance, KuCoin, Kraken, and Bitfinex saw their apps blocked, their URLs shuttered, and their users left scrambling.
The “grey market” era of operating in India without oversight was over.
From Crackdown to Compliance
Fast forward to 2025, and the picture looks different.
A total of 15 international exchanges have now filed with the FIU, swallowing fines and jumping through audits to secure a foothold in India.
Of these, seven have cleared the hurdle completely—including Binance, KuCoin, Coinbase, and Bybit—while others remain under review.
A few, like OKX and Bittrex, decided it wasn’t worth the fight.
Registration isn’t just paperwork.
It means integrating full INR payment rails, enforcing KYC/AML standards, and reporting trades under India’s 1% TDS tax regime.
In return, platforms get legitimacy in a market where retail demand is soaring.
The Price of Entry Into India’s Crypto Scene
Compliance hasn’t come cheap. Between 2023 and 2024, the FIU levied nearly $15 million in fines against non-registered exchanges, of which around $3 million has already been collected.
The penalties were one-off, but the running costs are steep: annual audits, 18% GST on fees, and constant oversight by regulators who are unafraid to pull the plug.
Yet for exchanges like Coinbase, which formally relaunched operations in October 2025, the opportunity outweighs the burden.
With India topping the Chainalysis adoption index two years in a row, global firms see the country as too big—and too young—a market to ignore.
Winners and Holdouts
Today, the approved list reads like a who’s who of global crypto:
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Binance (August 2024) – leading with 500+ tokens and low-cost P2P INR trades.
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KuCoin (March 2024) – offering India’s widest menu at 700+ tokens.
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Coinbase (March 2025) – aiming for trust with a clean, user-friendly platform.
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Bybit (February 2025) – catering to derivatives traders with leverage up to 100x.
Others, including Kraken, Huobi, and Gate.io, remain in regulatory limbo. For now, their Indian presence is muted, limited to VPN workarounds that carry the risk of frozen funds.
Why It Matters For India’s Crypto Scene
The FIU’s campaign has reshaped India’s crypto map.
What once looked like a chaotic free-for-all now resembles a regulated marketplace with defined rules of entry.
But this is still India: a country where crypto is taxed heavily, policy signals can change overnight, and enforcement is aggressive.
Exchanges that once thrived in the shadows are learning that in this market, compliance is the price of survival.
For Indian users, though, the shift may mark the beginning of something new: access to global platforms without the uncertainty of shutdowns, VPNs, or frozen withdrawals.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
