• 19 June, 2024

Does India’s FIU Ban Affect Crypto Investment? A Detailed Analysis of Indian Crypto Exchanges

In the dynamic world of cryptocurrencies, global adoption has inevitably led to a proliferation of cryptocurrency exchanges. These digital platforms act as gateways to facilitating users, traders, and investors to trade with cryptocurrencies. Much like traditional stock exchanges, these digital marketplaces let users assess the virtual currencies and offer an array of trading and investing tools.

However, recent developments in the Indian cryptocurrency ecosystem have sent ripples across the industry. On December 28, 2023, the Financial Intelligence Unit (FIU) under the Indian Finance Ministry issued show-cause notices to nine offshore cryptocurrency exchanges operating in India. Cryptocurrency exchanges Binance, Huobi, and Kraken were deemed “illegally operating” and violated India’s anti-money laundering laws.

Recent Changes in India’s Regulatory Landscape

Under the Prevention of Money Laundering Act 2002, the FIU called for compliance with record reporting and other obligations. This included mandatory registration with the FIU and adherence to stipulated requirements. However, many offshore entities serving a significant Indian user base had managed to operate without proper registration, placing them outside the purview of anti-money laundering and counter-financing of terrorism frameworks.

The FIU India, as the primary national agency, processes and shares information on suspicious financial transactions with foreign intelligence units and enforcement agencies. In response to these regulatory developments, crypto enthusiasts are advised to consider moving their assets to crypto exchanges in India registered with the FIU. This ensures a localized experience and provides legal recourse against fraudulent activities.

Mudrex, a FIU-compliant platform, has recently garnered attention for its ability to facilitate secure and accountable crypto experiences. Notably, the platform has seen a significant increase in crypto deposits, including funds from Binance. Mudrex’s CEO, Edul Patel, emphasized the importance of having assets in FIU-compliant entities, highlighting their critical role in ensuring a secure and responsible crypto landscape.

Top Indian Crypto Exchanges

In the face of regulatory shifts, prudence becomes paramount. Instead of succumbing to panic and hastily selling assets on international platforms, Patel advocated a strategic move to Indian exchanges or personal wallets. This strategic shift allowed users to swap or sell their assets according to their preferences, mitigating risks associated with trading on international platforms.

The Indian cryptocurrency landscape is undergoing a significant transformation under changing regulatory frameworks. As investors explore safe havens for their digital assets, they seek refuge in exchanges that comply with Financial Intelligence Unit (FIU) standards. In this regard, there is an extensive analysis of the top cryptocurrencies in Indian exchanges, which offer secure docking of assets for users.

  1. UnoCoin: Navigating the Waves of Tradition

UnoCoin stands as one of India’s most established and prominent exchanges, providing users with a broad spectrum of trading options encompassing eighty digital currencies. As an enticing bonus for new users, UnoCoin offers complimentary Bitcoins upon registration and presents a referral program, enabling users to earn 15% of their transaction fees.

  1. WazirX: Riding the Tide of Growth

WazirX has gained acknowledgment as one of India’s rapidly expanding exchanges, featuring an extensive user base that surpasses sixty lakh registered users. Renowned for its user-friendly interface and advanced trading charts, WazirX is easily accessible on Android, web, iOS, and Windows applications, catering to the needs of novice and experienced users.

  1. ZebPay: Anchoring Trust in Crypto Investments

ZebPay is well-known for providing interest earnings on dormant cryptocurrency holdings. With a commitment to guaranteed returns, the platform offers a fixed 4% return for lending crypto. Demonstrating extensive support, ZebPay accommodates over 100 cryptocurrencies, attracting approximately 50 lakh registered users.

  1. CoinDCX: Safely Navigating Crypto Transactions

CoinDCX prides itself on transparency, positioning itself as an Indian crypto exchange platform prioritizing openness and safety. The onboarding process is executed securely, incorporating biometric checks to ensure user safety. Additionally, CoinDCX stands out by offering self-custody wallets, granting users added control over their assets.

  1. Mudrex: Pioneering FIU Compliance

Mudrex embarked on an innovative vision in 2018, aspiring to transform cryptocurrency investing into a long-term and less risky endeavor. As a testament to its commitment to regulatory compliance, Mudrex took early steps to register with FIU in India, establishing itself as one of the pioneers and proudly maintaining 100% adherence to Indian regulations. Noteworthy user benefits include Mudrex’s distinction of having over a million invested users and the exclusive advantage of zero fees on crypto deposits.

  1. CoinSwitch: Navigating Crypto for Beginners

CoinSwitch distinguishes itself as a top choice among crypto exchanges tailored for beginners. Offering a wide array of cryptocurrencies, users can trade with over 100 options, starting from as low as INR 100. CoinSwitch provides a unique perspective on the Indian rupee-based crypto market performance by offering trading pairs of INR to the crypto rupee index, providing valuable insights for users.


As the regulatory landscape of cryptocurrency continues to evolve, one of the foremost challenges facing users is identifying a reliable and compliant exchange platform. Given the Indian government’s recent moves to establish a regulatory framework for cryptocurrencies, users must select platforms prioritizing compliance to safeguard their digital assets. Navigating the stormy seas of change requires strategic decision-making informed by a deep understanding of the evolving regulations. With this in mind, carefully considering available options and a proactive approach to compliance can help users chart a course toward a safer harbor for their cryptocurrency holdings.

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