Binance was blocked in India because it was serving Indian users without being registered with FIU-IND, the Financial Intelligence Unit, as Indian anti-money-laundering law requires. Since March 2023, any business that exchanges, transfers or safekeeps virtual digital assets for Indian users must register with FIU-IND as a reporting entity under the PMLA, whether or not it has an office in India. In December 2023, FIU-IND issued show-cause notices to nine offshore platforms including Binance and asked for their websites to be blocked. In June 2024 it fined Binance ₹18.82 crore, and Binance returned to India in 2024 after the penalty.
The same rule has been applied to other offshore platforms since: Bybit was fined ₹9.27 crore in January 2025, 25 platforms got notices in October 2025, and 15 more on 9 September 2026. The reason in every case was the same: non-compliance with the PMLA. It was not about whether the platforms were scams, and it was not about crypto being banned.
The rule underneath it all
Start with the rule, because everything else follows from it.
On 7 March 2023, the Ministry of Finance issued notification S.O. 1072(E). It brought five virtual digital asset activities under the Prevention of Money Laundering Act: exchanging VDAs for fiat, exchanging between VDAs, transferring VDAs, safekeeping or administering VDAs, and services related to an issuer's offer and sale of a VDA. Any business doing these for others became a reporting entity, with duties to register with FIU-IND, do KYC, keep records and report.
FIU-IND has said these obligations are activity-based. They do not depend on physical presence in India. If you serve Indian users, the rule applies to you.
Indian platforms registered. Several large offshore platforms kept serving Indian users without doing so. That gap is what the next three years of enforcement were about.
December 2023: the first nine notices
On 28 December 2023, FIU-IND issued show-cause notices to nine offshore VDA service providers: Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex. It also asked the Ministry of Electronics and Information Technology to block their URLs.
This is when many Indian users first found the websites or apps of some of these platforms unavailable.
June 2024: Binance fined ₹18.82 crore
On 19 June 2024, FIU-IND imposed a penalty of ₹18,82,00,000 (₹18.82 crore) on Binance under section 13 of the PMLA, by Order No. 10/DIR/FIU-IND/2024. Binance returned to India in 2024 after the penalty.
FIU-IND's penalties on offshore platforms have ranged widely, from about ₹34.5 lakh on KuCoin to ₹18.82 crore on Binance.
January 2025: Bybit fined ₹9.27 crore
Bybit received a show-cause notice on 7 May 2024. On 12 January 2025, Bybit restricted its services in India while completing its FIU registration. On 31 January 2025, FIU-IND imposed a penalty of ₹9,27,00,000 (₹9.27 crore) on Bybit Fintech Limited by Order No. 15/DIRFIU-IND/2024.
Around the same period, Coinbase resumed onboarding Indian users after registering with FIU-IND. The pattern is consistent: register, and you can serve Indian users within the rules.
October 2025: 25 more notices
On 1 October 2025, FIU-IND issued notices to 25 offshore VDA service providers and sought takedown of their websites and apps under section 79(3)(b) of the IT Act. The list included Huione, BC.game, Paxful, Changelly, CEX.IO, LBank, Youhodler, BingX, PrimeXBT, BTCC, CoinEx, Remitano, Poloniex, BitMex, Bitrue, LCX, Probit Global, BTSE, HIT BTC, LocalCoinSwap, AscendEx, Phemex, ZooMex, CoinCola and CoinW. At that time, 50 providers were registered with FIU-IND.
September 2026: 15 more
On 9 September 2026, FIU-IND issued notices under section 13 of the PMLA to 15 VDA service providers: Weex, Blofin, RezorEx, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, FixedFloat, WhiteBIT and Guardarian. FIU-IND's Director, as nodal officer under section 79(3)(b) of the IT Act, sought takedown of their apps and URLs. In announcing the action, FIU-IND reminded the public that crypto products and NFTs are "unregulated and can be highly risky", with possibly no regulatory recourse for losses.
What "blocked" means for users
When FIU-IND seeks a takedown, the platform's website and app may become unavailable through normal channels in India. That is a statement about the platform's compliance with Indian law. It is not a finding that the platform is a scam, and it does not by itself say anything about the safety of funds held there.
If you hold assets on a platform that has received a notice, a few calm steps:
- Read the platform's official announcements, through its official channels, about what it is doing.
- Keep your statements and transaction records. You need them for your taxes anyway.
- Beware of anyone who contacts you offering to "help" move or recover funds. Never share your OTP, password, PAN or seed phrase.
- Remember your tax obligations do not change based on where you traded. All VDA income is reported in Schedule VDA, and gains are taxed at 30% under section 115BBH. Check your case with a CA.
I am not going to tell you to use or avoid any named platform. That is your decision. What I will say is: check the FIU-IND list yourself, and do not make the decision based on tax. The 1% TDS under section 194S (now section 393 under the Income-tax Act, 2025) is credited against your tax when you file. It is not a cost to escape. You can read how TDS on Bitcoin works for the detail.
Why this does not surprise me
When we started Unocoin in 2013, our philosophy was that you cannot run from the government. They exist and you have to deal with them. Never break the rules. Never be offside. In 2018, when the RBI told banks to cut off crypto businesses, some companies left India. We stayed, laid off about a hundred people to survive, and went to court as part of the case that got the ban set aside in 2020.
The offshore enforcement story is that same principle seen from the other side. Since 2023 the rule has been the same for everyone, Indian or foreign, big or small: if you serve Indian users, register with FIU-IND and follow the anti-money-laundering law. Platforms that did were able to keep serving Indian users. Platforms that did not got notices.
How to check any platform yourself
- Find FIU-IND's published list of registered VDA service providers on the FIU-IND website.
- Match the platform's legal entity name, not just its app name.
- Then check how long it has operated, what it says about where assets are held, whether it deducts TDS, and whether you can withdraw to your own wallet.
Registration is a minimum, not a recommendation. It means the platform follows anti-money-laundering rules. It does not make crypto regulated or protect your holdings.
Questions to ask before using any platform based outside India
- Is its legal entity on FIU-IND's list today, not last year?
- Has it received a notice or penalty from FIU-IND, and what did it do afterwards?
- Does it deduct TDS on your sales and does that TDS appear in your Form 26AS?
- Who do you contact in India if something goes wrong, and through which official channel?
- Can you withdraw to your own wallet, and have you tested it with a small amount?
If you cannot answer these, you do not yet know enough to trust the platform with your money. That is true for Indian platforms too.
For the full checklist, read how to check any platform.
Common questions
Why was Binance banned in India?
In December 2023 FIU-IND issued show-cause notices to nine offshore platforms including Binance for serving Indian users without registering as reporting entities under the PMLA, and asked for their URLs to be blocked. In June 2024 it fined Binance ₹18.82 crore.
Is Binance allowed in India now?
Binance returned to India in 2024 after its FIU-IND penalty. Check FIU-IND's published list of registered VDA service providers yourself for any platform's current status.
How much did FIU fine Binance?
₹18.82 crore (₹18,82,00,000), by FIU-IND order dated 19 June 2024 under section 13 of the PMLA.
Why are offshore crypto apps blocked?
Because PMLA obligations are activity-based: platforms serving Indian users must register with FIU-IND whether or not they are located in India. FIU-IND has sought takedowns of unregistered platforms in December 2023, October 2025 and September 2026.