Crypto Exchanges Banned in India: What Happened and Where to Trade Now

When crypto exchanges banned in India, major platforms like WazirX and CoinDCX were forced to restrict fiat on-ramps after the Reserve Bank of India issued a circular in 2018 that later got overturned by the Supreme Court in 2020. Also known as Indian crypto trading restrictions, this move didn’t outlaw cryptocurrency itself—but it made it nearly impossible to buy crypto with Indian rupees through regulated platforms. The result? Millions of Indian crypto users were left scrambling for alternatives.

What followed was a surge in P2P crypto, peer-to-peer trading networks where users directly swap crypto for cash via UPI, bank transfers, or gift cards without needing a licensed exchange. Also known as crypto OTC trading, this method became the lifeline for traders who still wanted to buy Bitcoin, Ethereum, or Solana despite the banking blockade. At the same time, no-KYC exchanges, platforms that don’t require identity verification or local banking links, gained popularity among users who prioritized privacy over compliance. Also known as offshore crypto platforms, these sites operate outside India’s jurisdiction and let users deposit crypto directly from wallets. The problem? Many of these platforms lack customer support, insurance, or legal recourse if funds disappear.

India’s stance on crypto has shifted since 2022. The government now taxes crypto gains at 30% and adds a 1% TDS on every trade, signaling a move toward regulation—not prohibition. But the ban on fiat gateways remains. That means if you want to buy crypto with INR today, you’re either using P2P marketplaces like LocalBitcoins or Paxful, or you’re depositing crypto from an overseas wallet into a non-Indian exchange. Some traders even use gift cards or crypto-backed loans to bypass banking limits. None of these options are perfect, but they’re the only ones left.

Below, you’ll find real reviews and case studies of platforms that Indian users actually rely on—some legal, some gray-area, and some outright risky. You’ll also see what happened to exchanges like FTX Turkey that tried to operate without local licenses, and how other countries’ crypto crackdowns mirror India’s struggles. This isn’t about speculation. It’s about survival in a system that doesn’t want you to hold crypto—but hasn’t figured out how to stop you.