First, the most important rule
In India, crypto exchanges must register with FIU-IND (the Financial Intelligence Unit of India) under the anti-money-laundering law (PMLA). Before using any exchange, the single most important check is that it currently holds this registration. Registration status can change, and the government has previously blocked non-compliant offshore platforms — so always verify the current list directly on the official FIU-IND website rather than trusting any third party, including us.
How to choose an exchange (what to look for)
Rather than naming "the best" exchange — which changes and depends on your needs — it's more useful to know what separates a trustworthy platform from a risky one. Look for: current FIU-IND registration (non-negotiable); a solid security track record (no history of major unresolved hacks, plus features like two-factor authentication); transparent fees (trading fees, deposit/withdrawal charges — read these before you commit); good INR support (easy, reliable rupee deposits and withdrawals via UPI or bank transfer); and responsive customer support, which matters enormously if something goes wrong with your money.
How buying typically works
The usual journey on a registered Indian exchange looks like this. You sign up and complete KYC (identity verification with PAN and often Aadhaar) — this is legally required, so any platform skipping it is a red flag. You add money in rupees from your bank. You place an order for the crypto you want. And ideally, for anything you intend to hold long-term, you can move it to a wallet you control rather than leaving everything on the exchange (see our note on custody below).
Tax is automatic and unavoidable — know this first
India's crypto tax rules are strict and apply to everyone, so understand them before you start. Any profit is taxed at a flat 30%, and a 1% TDS (tax deducted at source) is taken on transactions — usually handled automatically by registered Indian exchanges, which is one practical advantage of using them over offshore platforms. Crucially, you cannot offset crypto losses against other income. Our India crypto tax guide explains all of this in plain language with examples — read it before trading, not after.
A note on safety and custody
Leaving crypto on an exchange means the exchange holds it for you — convenient, but you're trusting them to stay solvent and secure (the collapse of platforms elsewhere, like FTX, showed why this matters). For anything significant or long-term, many people move their crypto to a wallet they control. Understand the trade-off — explained simply on our custodial vs non-custodial page — and decide what suits you.
Red flags to walk away from
Be cautious of any platform that isn't FIU-IND registered, skips KYC, promises guaranteed or unusually high returns, pressures you to act fast, or makes it hard to withdraw your money. These are classic warning signs. Crypto in India is legal to buy and hold, but it's an environment where caution genuinely protects you. Nothing here is financial advice — it's guidance to help you make your own informed, careful decisions.