TLDR
India is actively blocking access to offshore crypto platforms that are not registered or compliant with its antimoney laundering and gaming rules.
- Indias financial watchdog has ordered ISPs to block dozens of unregistered or non-compliant crypto platforms, including offshore exchanges and prediction markets.
- The push targets AML gaps and gambling-style products, tightening control over capital flows and pushing users toward locally regulated exchanges.
- Next, expect more enforcement, clearer registration lists, and possible further blocks, while tax and reporting rules for Indian crypto users stay strict.
Deep Dive
1. What India Has Blocked And Why
Indias Financial Intelligence Unit (FIU-IND) has escalated enforcement against offshore virtual digital asset (VDA) platforms that have not registered as reporting entities under antimoney laundering (AML) law.
According to a recent briefing, FIU-IND has initiated 52 AML compliance cases, imposed about ?29 crore in penalties on major offshore firms such as Binance, Coinbase, KuCoin and Bybit, and has already blocked 63 URLs while disabling access to 85 crypto-related websites for non-compliance. Authorities describe the domestic VDA ecosystem as high risk, linking it to money laundering, cyber fraud and illegal cross-border flows.
Separately, India has also restricted access to crypto-based prediction markets like Polymarket, classifying them as prohibited online money gaming services under a 2025 gaming law, similar to how Indonesia framed Polymarket as online gambling.
Non-compliant refers mainly to missing FIU registration and violations of AML or gaming rules, not a blanket ban on all crypto.
2. Impact On Indian Users And Markets
For Indian residents, access to many offshore exchanges and prediction markets via normal internet and app stores is being cut off at the ISP or domain level.
Trading remains possible on India-facing platforms that have registered with FIU-IND and follow strict know-your-customer (KYC) and reporting rules, but the mix of a 30% tax on gains plus 1% TDS on trades has already reduced liquidity and pushed some activity offshore. Blocking non-compliant venues is designed to close that escape valve by making unreported offshore trading harder.
Liquidity and product choice increasingly concentrate on regulated venues, while attempts to route around blocks (VPNs, informal P2P) carry both legal and counterparty risk.
3. What To Watch Next
Policymakers are studying US, EU, Japanese and other frameworks and are considering tighter reporting, PAN-linked ownership tracking, and standard valuation methods for VDAs.
If this continues, you can expect:
- A clearer list of FIU-registered platforms and potentially more domain blocks for those that do not comply.
- Ongoing pressure on products that look like gambling or high-leverage betting, including some derivatives and prediction markets.
- Gradual convergence toward a regime where serious volume sits on a small set of heavily regulated venues.
For anyone exposed to India-related flows, venue selection, compliance status, and tax rules matter more than short-term price moves.
Conclusion
Indias move to block dozens of non-compliant crypto platforms is less a surprise crackdown and more the visible enforcement phase of a high risk classification for the VDA sector. It tightens the funnel toward registered, KYC-heavy platforms and treats gambling-style markets harshly, raising compliance costs but also providing clearer signals about which venues regulators are willing to tolerate.
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