Binance's status in India changed in 2024. Here's where it stands in 2026 and what compliant use looks like.
From banned to registered
In January 2024 India blocked several offshore exchanges, including Binance, for serving Indians without FIU-IND registration. Binance then registered with FIU-IND, settled an ₹18.82 crore penalty, and was restored for Indian users by mid-2024.
As of 2026 it operates as a registered VDA provider, so using it is legal.
Legal, but taxed and KYC'd
Legal does not mean tax-free. Every trade attracts 1% TDS on the transfer value, and gains are taxed at a flat 30% with no offset for losses. Binance applies full KYC for Indian accounts.
Keep records (UTRs, statements) for tax filing, and expect banks to occasionally query crypto-related inflows under their own AML processes.
Key takeaways
- Binance is legal in India in 2026 (FIU-IND registered).
- It was banned in early 2024, then registered + paid ₹18.82 cr, back mid-2024.
- Trading is taxed: 1% TDS + 30% on gains, no loss offset.
- Full KYC applies; keep records for filing.
