Key takeaways
- India has no crypto licensing law, but virtual digital asset service providers must register with FIU-IND under the anti-money laundering law since March 2023.
- WazirX was hit by a hack of about $230 million in 2024 and reportedly resumed operations on 24 October 2025; court filings place its FIU registration with a subsidiary.
- CoinDCX confirmed a hack of about $44 million in July 2025 and was reported as FIU-registered at the time.
- Registration is a compliance marker, not a guarantee of safety: do not keep more on an exchange than you can afford to lose.
Is WazirX legal in India? In plain terms, crypto exchanges are not banned in India, and WazirX and CoinDCX have operated openly. The legal marker that matters is registration with the Financial Intelligence Unit (FIU-IND) as a virtual digital asset service provider under India’s anti-money laundering law. But “legal” and “safe” are different things: both exchanges have suffered major hacks, and Indian law gives no deposit insurance to crypto balances.
This guide explains what legal means for an Indian crypto exchange, what is known about WazirX and CoinDCX, how to check whether any exchange is registered, what registration does and does not protect, and how to reduce your own risk. It is general information, not investment advice, and the status of any exchange can change. Check each exchange’s current disclosures and FIU-IND’s records yourself.
What legal means for a crypto exchange in India
India has no crypto licensing law. There is no statute that gives an exchange a licence to operate, and the Supreme Court struck down the Reserve Bank’s 2018 banking restriction in 2020. So an exchange does not need a licence to exist. What the law does require, since a March 2023 notification under the Prevention of Money Laundering Act, 2002, is that virtual digital asset service providers register with FIU-IND as reporting entities.
Registration brings obligations: appointing a compliance officer, verifying customers, keeping records, monitoring transactions and reporting suspicious ones. FIU-IND has also issued notices to offshore exchanges serving Indian users that were not registered. For a user, FIU registration is the closest thing to a legal marker of compliance, and when people ask is WazirX legal in India, registration is the right test.
Tax reporting is a second marker. Exchanges deduct the 1% tax at source on transfers and, under the Income-tax Act, 2025, must furnish statements of crypto-asset transactions, with penalties for failure. An exchange that does not comply with these duties is a warning sign. Still, none of these rules protects your money if the exchange fails, which is the gap that most users overlook.
What is known about WazirX and CoinDCX
WazirX suffered a hack in July 2024 in which about $230 million was reported stolen. It went into a restructuring under a scheme of arrangement approved by the Singapore High Court, and reports say it resumed operations in India on 24 October 2025 with zero trading fees. Court filings reportedly show that the FIU-IND registration sits with a subsidiary, Zanmai India, which handles reporting duties. Check how the group describes the structure today. Anyone asking is WazirX legal in India should read the latest group disclosures.
CoinDCX confirmed in July 2025 that about $44 million was stolen from an internal account used for liquidity on a partner exchange. The company said that customer funds were safe and that it would bear the loss. Reports describe CoinDCX as registered with FIU-IND at that time. We did not find any report of the registration being suspended. The company later announced a bounty for recovery of funds.
These facts show why the question is not only is WazirX legal in India. Both exchanges operated lawfully and both were hit by large hacks. Legal status told users who was responsible for compliance, not whether their assets were secure. Statuses, ownership and restructuring terms change, so read the exchange’s latest announcements, and treat news reports as a starting point rather than as proof.
How to check FIU registration
Start with the exchange’s own website. A registered exchange usually states its FIU-IND registration and the legal entity that holds it, often in its terms or footer. Note the exact company name. Some groups run several entities, and the one that holds your account may differ from the brand name. Check that the entity named in the terms is the one that is registered.
| Check | What to look for | Why |
|---|---|---|
| Legal entity | The company named in the terms and its FIU-IND registration | Brand and registered entity can differ |
| Independent confirmation | FIU-IND information and reputable reports | A claimed number is not proof |
| Tax practice | TDS deduction and tax statements | A sign of compliance |
| Custody and insolvency terms | Who holds assets and what happens on failure | No statutory compensation scheme exists |
| Security record | Past incidents and responses | Both WazirX and CoinDCX were hacked |
Then look for independent confirmation. FIU-IND publishes information about reporting entities and has made public statements and notices on compliance. Check the FIU-IND website and official press releases, and cross-check with reputable news. If you cannot find a registration for the entity that serves you, ask the exchange in writing, and treat a vague reply as a warning. Be careful with sites that only claim a registration number.
Check the other markers too: whether the exchange deducts TDS, issues tax statements, has a grievance officer, publishes its terms and proof of reserves, and has a clear privacy policy under the Digital Personal Data Protection Act, 2023. Look for the exchange’s security record and how it handled past incidents. A single check is not enough, so repeat it from time to time, since registration and restructuring details can change.
What registration does not protect
FIU registration does not guarantee that your assets are safe. There is no statutory fund that compensates users, and bank deposit insurance does not apply to crypto balances. If an exchange is hacked, becomes insolvent or restructures, you depend on the company’s solvency, its insurance if any, and the outcome of court or scheme processes. Recoveries have often been partial and slow.
Registration also does not mean regulatory approval of the exchange’s products. FIU-IND supervises anti-money laundering compliance, not market conduct, custody standards or investor protection. SEBI and the Reserve Bank do not supervise crypto exchanges. So claims such as “government approved” or “regulated by FIU” can mislead. Read them as saying the exchange has registered for reporting purposes.
Practical steps follow. Do not keep more on an exchange than you can afford to lose. Withdraw to a wallet you control for long-term holdings, use strong security and two-factor authentication, and avoid yield products that you do not understand. Keep your own records of trades and balances, and file your tax returns correctly. If a platform freezes withdrawals, act quickly and keep evidence.
Next steps and quick answers
Before you use any exchange, find the legal entity, confirm its FIU-IND registration through more than one source, read the terms on custody and insolvency, and check its tax and security practices. Review your exposure once a year. Remember that is WazirX legal in India is a different question from is my money safe on WazirX. This is general information, not investment advice.
Related reading: FIU-IND registration for crypto businesses, what to do when a crypto exchange is hacked, whether crypto is legal in India in 2026, whether P2P crypto is legal in India, bank accounts frozen after UPI crypto trades, crypto tax in India: 30% and 1% TDS and what Budget 2026 changed for crypto tax; also the KuCoin alert from VARA.
Quick answers
Is WazirX legal in India?
WazirX operates in India and, according to court filings, its FIU-IND registration sits with a subsidiary. Crypto exchanges are not banned, but legal status does not guarantee that your assets are safe.
Is CoinDCX registered with FIU-IND?
Reports describe CoinDCX as FIU-registered at the time of its July 2025 hack, and we found no report of suspension. Confirm on the exchange’s site and with FIU-IND sources.
How do I check whether a crypto exchange is FIU-registered?
Find the legal entity in the exchange’s terms, check its stated FIU-IND registration, confirm through FIU-IND information and reputable reports, and ask the exchange in writing if unsure.
Does FIU registration mean my crypto is insured?
No. FIU registration relates to anti-money laundering compliance. There is no deposit insurance or statutory compensation scheme for crypto balances in India.
What should I do if an exchange freezes withdrawals?
Keep evidence of your balances and requests, follow the exchange’s official channels, avoid paying anyone who promises recovery and take advice early.
Final word
Halverton & Co. is an Indian law firm advising founders, startups, technology companies and investors on Indian law, including virtual digital asset regulation, anti-money laundering compliance, crypto disputes and investor advisory. We practise in Jharkhand, Maharashtra and before the Supreme Court of India, and act as fractional legal counsel for technology-driven businesses. Halverton & Co.: Where tech needs law! If you have a question about Indian law, write to us at office@halvertonandco.com, or get in touch.
This article reflects developments reported up to 31 October 2026. It is for general information only, is not legal advice, and does not create an advocate-client relationship. Halverton & Co. is an Indian law firm.
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