India is the world's most populous emerging cryptocurrency market, and the relationship between Binance and Indian regulators has gone through a complete cycle of "Entry - Ban - Return". This article outlines the timeline of what Binance encountered in India and the current actual availability status for Indian residents. If you are in India and need to use it, you can first visit the Binance Official Website and download the Binance Official APP. Apple users can refer to the iOS Installation Guide.
Can I Use Binance in India Right Now?
Direct answer: Yes, you can use it right now. After the turbulence of being blocked at the end of 2023 to officially returning in August 2024, Binance has now completed compliance registration with the FIU-IND (Financial Intelligence Unit) in India, becoming one of the first foreign cryptocurrency exchanges officially registered in India.
As of the end of 2024, Indian residents can normally access Binance, complete KYC, and deposit with INR, but they are required to pay a 30% crypto capital gains tax and a 1% TDS according to Indian law.
Timeline Review
Phase 1: 2017-2022 The Gray Area
Indian cryptocurrency was in a legal vacuum for a long time. In 2018, the RBI (Reserve Bank of India) issued a circular banning banks from providing services to crypto enterprises. This ban was lifted after being ruled unconstitutional by the Supreme Court of India in March 2020.
During this period, the Binance main site was completely open to Indian users, and India grew into one of the top 5 traffic source countries for Binance globally. Binance even acquired the local Indian exchange WazirX in 2019 (although the two parties later had disputes over ownership issues).
Phase 2: 2022 30% Crypto Tax
On April 1, 2022, the crypto tax law passed by the Indian Ministry of Finance went into effect:
- All cryptocurrency trading profits are subject to a 30% income tax (in the same bracket as speculative income like lotteries).
- An additional 1% TDS (Tax Deducted at Source) is levied on every transaction.
- Losses cannot be offset against other income.
This is one of the harshest crypto taxes globally. The direct consequence was that local Indian exchanges (WazirX, CoinDCX, Zebpay) saw their trading volumes plummet by over 70%, and a large number of users shifted to foreign platforms like Binance.
Phase 3: December 2023 Blockade and Ban
On December 28, 2023, the FIU-IND, under the Indian Ministry of Finance, issued a notice to the Ministry of Electronics and Information Technology (MeitY), accusing 9 foreign cryptocurrency exchanges of not registering in India under the Prevention of Money Laundering Act (PMLA) and operating illegally. These 9 included:
- Binance
- KuCoin
- Huobi
- Kraken
- Gate.io
- Bittrex
- Bitstamp
- MEXC
- Bitfinex
In January 2024, India began blocking the websites and APPs of these exchanges:
- Removed from Google Play and Apple App Store
- Website URLs blocked by ISPs
- SMS verification codes unable to reach Indian phone numbers
This blockade was not a direct ban on usage, but an effort to force foreign exchanges to register with the FIU-IND and fulfill AML obligations. Users who already had Indian accounts could still access via VPN, but registration for new users became difficult.
Phase 4: August 2024 Official Return
In May 2024, Binance agreed to accept Indian regulations, paid a fine of approximately $2.2 million (as an administrative penalty for violating the PMLA), and completed registration with the FIU-IND as required.
In August 2024, Binance announced that it had reopened full services to Indian users:
- Indian version of the website launched
- App Store and Google Play downloads restored (in the Indian region)
- Supported INR fiat channels
- User data reported to FIU-IND as required
Binance became one of the first foreign exchanges to complete compliance registration, and KuCoin subsequently completed a similar registration.
Current Availability Status for Indian Residents
Registration and KYC
- Visit binance.com
- Register with an Indian phone number (+91) or email
- Submit your PAN Card (Permanent Account Number) and Aadhaar (Indian ID Card) for KYC
- Facial recognition
- Approval usually takes 1-2 working days
Fiat Channels
Indian users mainly deposit funds through the following methods:
- INR Bank Transfer: via UPI or IMPS
- UPI Instant Payment: corresponding to scan-to-pay in China
- C2C P2P: directly exchange INR-USDT with other users
Note: Some Indian banks remain conservative about cryptocurrency-related transfers and may occasionally block the first large transfer. Mainstream banks like HDFC, ICICI, and SBI are relatively open to compliant exchanges.
Details of Indian Crypto Tax Rules
This is what Indian users need to pay the most attention to:
| Item | Tax Rate | Description |
|---|---|---|
| Crypto Gains | 30% | All profits, regardless of holding period |
| TDS Withholding | 1% | Automatically deducted per transaction |
| Loss Offset | Not Allowed | Cannot offset against other income in the same year |
| Long-term Holding Benefit | None | No LTCG benefit like stocks |
| Gifted Crypto | Taxed on Recipient | Taxed if exceeding 50,000 INR |
Impact of 1% TDS: Suppose you trade frequently with 1 million INR, you will have 1% withheld as tax over a year. If you switch positions frequently, your funds will quickly suffer "wear and tear." Therefore, Indian users generally adopt strategies of low-frequency trading and long-term holding.
Dispute Between Binance and WazirX
There is a piece of history here that needs to be clarified: In 2019, Binance announced the acquisition of the local Indian exchange WazirX, but the two parties later had a dispute over the scope and ownership of the acquisition. In August 2022, Binance founder CZ tweeted stating that "Binance has never owned any equity in WazirX, only providing wallet services," while WazirX founder Nischal Shetty insisted the acquisition did occur.
In July 2024, WazirX suffered a hacker attack of over $235 million, and a large amount of user funds were stolen, which deepened the division between the two parties. To date, WazirX and Binance are two independent platforms, and Indian users should clearly choose one of them and pay attention to distinguishing official information.
Frequently Asked Questions
Q: Do I still need a VPN to register for Binance in India now?
A: No. After Binance officially returned to India in August 2024, the website, APP, and verification codes have all returned to normal. Indian phone numbers can directly receive SMS, and downloads from Google Play and the App Store have also been restored.
Q: Can the 1% TDS be avoided?
A: No. As long as the transaction occurs on a compliantly registered exchange (including the Indian version of Binance), the TDS will be automatically deducted from the transaction amount and reported. If a foreign exchange is non-compliant, it actually forces you to bear higher legal risks.
Q: Which is better, local Indian exchanges or Binance?
A: Each has its pros and cons: Local exchanges (CoinDCX, ZebPay) are more convenient for automatically generating tax reports; Binance has more advantages in terms of coin variety, liquidity, and fee rates. Many users use both.
Q: I registered a Binance account in another country. Can I use it when I return to India?
A: Yes. Binance allocates compliant entities based on the place of residence during KYC, but logging in is not restricted by region. If you want to enjoy INR deposits after returning to India, you need to update your KYC to Indian residency.
Q: Will India ban Binance again?
A: Judging from current trends, the possibility is low. India has chosen the route of "registration regulation + high taxes" rather than a "complete ban," and Binance is already compliantly registered. However, Indian policies have indeed reversed multiple times in history, so long-term dynamics still need to be monitored.