The short answer
- Buying crypto is legal in India. It's taxed, not banned.
- Use an exchange registered with FIU-IND, India's Financial Intelligence Unit. As of March 2026, 54 crypto service providers were on the register, including CoinDCX, CoinSwitch, ZebPay, Mudrex, Binance, Bybit, KuCoin and Coinbase.
- You'll need your PAN and Aadhaar for KYC, and an Indian bank account to deposit rupees.
- Start small, avoid peer-to-peer (P2P) trades with strangers, and plan for the 30% tax before you buy.
Most problems new buyers in India run into aren't about which coin to buy. They're about where they buy it and how money moves in and out: a frozen bank account after a P2P trade, an app that turns out not to be registered, or a tax bill nobody warned them about. This guide walks through the process step by step, with the checks that keep you out of trouble.
Step 1: Pick an FIU-registered exchange
Since 2023, every crypto exchange serving Indian users must register with FIU-IND and follow anti-money-laundering rules. In early 2024, the government blocked the websites of several offshore exchanges that hadn't registered. Some of them, including Binance, later registered and came back.
Registration doesn't mean the government guarantees your money. It means the exchange is known to the authorities, does KYC, reports suspicious activity, and deducts the 1% TDS on your sales correctly. That last point matters: if you use an unregistered platform, TDS isn't deducted, your records won't match the tax department's, and you may have trouble getting money back into your bank.
How to check
FIU-IND publishes its list of registered reporting entities. Many exchanges register under a company name rather than their brand. For example, CoinDCX appears as Neblio Technologies, CoinSwitch as Bitcipher Labs, and Binance as Nest Services Ltd. Search the exchange's website or app for its FIU registration, then check that company name on the list.
Indian or global exchange?
| Indian exchanges | FIU-registered global exchanges |
|---|---|
| Easy INR deposits by UPI or bank transfer | Usually more coins, and deeper markets for large orders |
| Fewer coins, and prices can differ slightly from global markets | INR deposits are often indirect, through P2P or by buying USDT first |
| Support and grievance officers based in India | Support teams are global, and response times vary |
Many people start on an Indian exchange to buy their first coins with rupees. If they later want a coin that isn't listed there, they move to a global exchange. Among global exchanges, Binance, Bybit, KuCoin and Coinbase are all on the FIU register.
Step 2: Complete KYC
Every registered exchange will ask for:
- PAN card, which is required because your trades are reported for tax
- Aadhaar or another address proof
- A selfie or short video to match your face to your documents
- A bank account in your own name, which must match your KYC name exactly
KYC usually takes anywhere from a few minutes to a day. An exchange that lets you trade large amounts without KYC isn't doing you a favour. It's a sign it isn't following Indian rules.
Step 3: Deposit rupees the safe way
On Indian exchanges, you can usually deposit by UPI, IMPS or NEFT. Some banks still decline crypto-related payments. If yours does, the exchange will list which bank options work.
Be careful with P2P. On P2P markets, you send rupees directly to a stranger's bank account and they release crypto to you. If that person's money came from fraud, police can freeze your bank account as part of the investigation, even though you did nothing wrong. Account freezes linked to P2P crypto trades are one of the most common complaints from Indian users. If you must use P2P, trade only with high-volume verified merchants, keep amounts small, and keep every screenshot.
Step 4: Place your first order
- Start with an amount you could lose entirely without it hurting. Crypto can fall 50% or more in weeks.
- Use a limit order rather than a market order on smaller coins. With a limit order, you set the price you're willing to pay. With a market order, you take whatever price is available, and that can be worse than you expected.
- Look at the fee before you confirm. Trading fees, spreads and withdrawal fees add up, especially on small amounts.
- Write down what you paid. You'll need it for tax.
Step 5: Decide where to keep it
Coins on an exchange are held by the exchange. If the exchange is hacked or freezes withdrawals, you can't reach them. Indian users learned this in 2024, when WazirX lost user funds in a cyberattack and withdrawals were frozen for over a year while a court-led restructuring was worked out.
For small amounts you're actively trading, leaving them on a well-run exchange is a reasonable trade-off. For larger amounts you plan to hold, move them to a wallet you control. Our guide to crypto wallets explains how.
Step 6: Plan for tax before you sell
Gains are taxed at a flat 30% plus cess, losses can't offset gains, and 1% TDS is deducted on every sale. Read our India crypto tax guide before your first sale, not after.
Red flags to walk away from
- An app or website you found through a WhatsApp group, Telegram channel or someone you met online
- Guaranteed or fixed daily returns
- Being told to deposit money into a personal UPI ID or bank account rather than the exchange's own account
- Pressure to deposit more before you can withdraw
- No FIU registration you can verify
Our scam guide covers these in detail, including how to report fraud on the 1930 helpline.
Not financial advice. This guide explains how to buy crypto safely in India. It doesn't recommend any coin, and crypto can lose most or all of its value. Exchange registrations can change, so check the FIU-IND list before you sign up.
Sources: Financial Intelligence Unit – India; CoinCodeCap, FIU-registered exchanges (register as of March 2026); Outlook Business, FIU registrations in 2024–25.
