The short answer: yes, using Binance from India is legal in 2026. The exchange registered with India’s Financial Intelligence Unit (FIU-IND) in 2024, after paying the biggest fine India had ever put on a crypto company. What registration did not do is turn Binance into an Indian exchange for tax purposes, and that gap is where Indian users get into trouble.
How Binance became legal again
In December 2023, FIU-IND sent show-cause notices to Binance and eight other offshore exchanges for serving Indians without registering under the anti-money-laundering law (PMLA). In January 2024 their websites and apps were blocked in India.
Binance registered as a reporting entity in May 2024, Reuters reported. On 19 June 2024 the FIU director ordered a penalty of ₹18,82,00,000 for past violations of PMLA record-keeping and reporting rules. According to The Economic Times, that ended a seven-month block, and Binance announced on 15 August 2024 that its site and app were fully available to Indian users again.
Registration is a money-laundering filing, not a safety rating. It means Binance must keep KYC records and report suspicious transactions to FIU-IND. It does not mean an Indian regulator protects your funds, as we explained in our guide on whether crypto is legal in India.
The catch: no 1% TDS on spot trades
On an Indian exchange, 1% TDS is cut from every sale and shows up against your PAN in your Annual Information Statement (AIS). On Binance it usually doesn’t. KoinX, an Indian crypto tax firm, says Binance does not deduct the 1% on spot trades, and that on P2P trades the duty to deduct sits with the Indian buyer.
No TDS does not mean no tax. The flat 30% plus 4% cess still applies to every gain, and your trades still have to go in Schedule VDA of your ITR.
Same gain, three outcomes
Take a sale of ₹5,00,000 of bitcoin that cost ₹4,00,000, a ₹1,00,000 gain.
| Scenario | TDS at sale | Tax owed | Paid how |
|---|---|---|---|
| Indian FIU-registered exchange | ₹5,000 (1%) | ₹31,200 | ₹5,000 credited, ₹26,200 you pay |
| Binance spot, filed correctly | ₹0 | ₹31,200 | All ₹31,200 you pay |
| Binance, unreported, taxed on full sale value | ₹0 | ₹1,56,000 | Demand from a notice |
The last row is not hypothetical in shape. Moneycontrol reported that notices sent mainly to Binance P2P users taxed the whole amount received in the bank without allowing the cost of purchase. On our example, 31.2% of ₹5,00,000 is five times the correct bill.
BtcMedia verdict: Binance is legal to use, but it hands you the job an Indian exchange does for you. If you trade there, download the full transaction history every year and keep your purchase records, because the cost price is what stands between ₹31,200 and ₹1,56,000.
What it means for Indian investors
- Compute the tax yourself. Our crypto tax calculator gives the 31.2% bill, and the Schedule VDA CSV builder turns an exchange’s trade export into ITR rows in your browser.
- Pay before March. With no TDS deducted, the whole tax may fall under advance-tax instalments; the crypto advance tax calculator shows the schedule.
- Expect the data to reach the tax department. Binance told Moneycontrol it reports suspicious transactions to FIU-IND, and KoinX says offshore exchanges will share Indian users’ data through the OECD’s CARF framework from April 2027.
- P2P buyers carry the TDS duty. Use the crypto TDS calculator to see what you should deduct.
FAQ
Is it illegal to use Binance in India? No. Binance has been registered with FIU-IND since 2024, and its website and app have been unblocked since August 2024.
Does Binance deduct TDS for Indian users? Not on spot trades, according to KoinX. You still owe 30% tax plus cess on gains and must report them in Schedule VDA.
Can I get a tax notice for Binance trades? Yes. Moneycontrol reported notices to Binance P2P users that taxed full bank receipts, so keep records of your purchase costs.
How we calculated this: tax at 30% plus 4% cess on the gain (31.2%), TDS at 1% of sale value, no surcharge, figures as of 30 October 2026 IST. Not financial or tax advice; check your own case with a tax professional.