Cryptocurrency is refurnishing financial landscapes, providing exciting opportunities. However, navigating its complexities, especially with ever-changing regulations in India, can be challenging. Investors are rising concerned about security risks and compliance, with 33% of Indian crypto users reportedly worried about rules. This blog has detailed changes in India’s crypto landscape and provides essential security standards to protect digital portfolios – Navigate India’s crypto landscape! Discover top exchanges, compliance, and security to protect your portfolio – 5 crypto exchanges in India
What are the Crypto Exchanges in India?
In India, substantial regulatory changes have altered the digital asset arena in a very different manner. Cryptocurrencies are not legal tender, but crypto exchanges and investments are still permitted. Virtual Digital Assets (VDAs) and profits from VDAs incur a flat tax rate of 30%. Although a TDS of 1% applies above thresholds, these regulations were meant to provide transparency and taxability to the crypto space. The government and RBI are working on more rules to clarify the legal status of crypto in India, and we expect this to take more time.
What Challenges are Investors Facing Regarding Cryptocurrency?
- Regulatory Ambiguity: Although the government and regulators have rolled out a few crypto updates, like taxation, in India, the absence of a holistic legal framework remains a pertinent concern. This ambiguity confuses investors, especially regarding the long-term status of digital assets.
- High Taxes and Transaction Costs: The imposition of a 30% tax on the gains realized from VDAs and the 1% TDS applied to transactions limit profitability. This tax structure also only applies specifically to crypto, which accounts for a considerable portion of the crypto changes in India. This has led to a reported decline in trading volumes on domestic exchanges.
- Security Risks and Fraud: When cryptocurrencies are decentralized, as they are in India, investors and the market are exposed to significant risks. Investors in India have lost millions of dollars to scams, hacks, and fraud, which constitutes a serious issue among the many crypto changes in India that need to be addressed.
- Market Volatility: The risk of investing in cryptocurrencies is also related to massive volatility. Prices of cryptocurrencies can change quickly and dramatically, a risk investors will face and cannot ignore as they navigate the landscape of crypto changes in India and the world.
- Limited Investor Protection and Grievance Redressal: Compared to the traditional financial regulatory framework, the crypto space in India offers limited investor protection. The crypto space lacks a formal grievance redressal mechanism for its investors, which is a big challenge amid the many crypto changes in India.
What makes a crypto platform compliant in India?
Platforms need to keep pace with crypto exchanges in India to operate legally, ensure investor protection, and maintain a fair market reputation that matches the intentions of today’s government and the RBI regulatory authority’s emphasis on fair financial transactions.
- FIU Registration / Compliance: Every crypto platform needs to register with the Financial Intelligence Unit (FIU) under the amended Prevention of Money Laundering Act (PMLA) 2005. This requirement is one of the most essential crypto changes in India. The platforms must monitor and report suspicious transactions to the FIU and maintain records.
- KYC & AML Procedures: The platform should have demonstrated use of robust Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. This means truly verifying the identity of the users and needing them to submit the proffered financial documents, whether it be Aadhaar or PAN for verification, is critical with recent crypto changes in India to combat illegal monetary transactions.
- Secure INR Transactions: Proper platforms offer secure deposits and withdrawals in Indian Rupees (INR) using UPI or bank transfers. This level of financial integration is critical for user trust and ensures platforms comply with the latest crypto changes in India.
- Strong Security Practices: Best-in-breed platforms have secure practices, such as storing most of the crypto in “cold” (offline) wallets, using AES-256 encryption, etc. These measures are pretty standard to safeguard assets within an evolving crypto environment in India.
- Adhering to Tax Laws: Platforms must comply with tax regulations on crypto in India, including the current 30% tax on gains on VDA and 1% TDS tax. This tax compliance represents a component of recent changes to crypto in India and must be reported accurately.
5 crypto Exchanges in India
Murdex: This app emphasizes a user-centric design and institutional-grade security. FIU-India licenses and regulates Mudrex and follows strict anti-money laundering (AML) and know-your-customer (KYC) regulations.
Mudrex allows users to trade over 650 cryptocurrencies and provides extra protection with features like video KYC for withdrawals. It’s a 0.2% transaction fee, and investment education makes it attractive to careful investors concerned about safety.
CoinSwitch: CoinSwitch, a crypto exchange in India, prioritizes security. It uses enterprise-driven custody providers for user crypto storage, a critical trust issue in India. Its ISO/IEC 27001:2022 certification regarding information security, among other certifications, illustrates that CoinSwitch takes its responsibility seriously.
CoinSwitch had over 20 million registered users as of May 2025, and it provides ongoing reports on its Proof of Reserves (PoR), so the number of Total Holdings should exceed customer assets. For example, the PoR from March 2025 noted a surplus of ₹ 625 crore.
Zebpay: ZebPay is one of the oldest crypto exchanges in India (started in 2014), and it usually has around 5M users. ZebPay values multi-signature wallets and conducts regular audits for safety. ZebPay is entirely KYC and AML compliant and continues its commitment to protecting user assets through security and ongoing practices, as documented in its blog on security and compliance in April 2025.
CoinDCX: CoinDCX was launched in 2018 and is one of India’s biggest and most trusted exchanges. It uses data encryption and cold storage for clients’ assets. Similarly to WazirX, it regularly undergoes third-party security audits.
CoinDCX provides insurance cover against breaches for user assets, a rare insurance feature. It has a Crypto Investor Protection Fund (CIPF) of ₹57.5 Cr as of April 2025, giving investors peace of mind about their protection as crypto changed in India.
Paxful: Paxful is a distinctly different peer-to-peer (P2P) cryptographic trading platform that utilizes a fully accessible model and promotes user ownership and control. Paxful offers escrow protection, where funds are held during the trade to protect buyers and sellers.
Individuals are also required to complete KYC and authentication by Paxful, and all users must abide by basic compliance guidelines worldwide when completing trades, assuring safe cross-border transactions. Paxful has different applications despite the uncertainty surrounding crypto in India, and is a safe and secure option to invest in cryptocurrency.
A quick look at 5 crypto Exchanges in India
| Name of Crypto Exchange | Key Security Features |
| Murdex | Video KYC, cold storage, and insured funds |
| CoinSwitch | Non-custodial, KYC, aggregation |
| Zebpay | Multi-sig wallets, audits |
| CoinDCX | Encryption, insurance, and audits |
| Paxful | Escrow, global KYC, P2P model |
A final word: 5 crypto Exchanges in India
Indian crypto exchanges include Mudex, CoinSwitch, Zebpay, CoinDCX, and Paxful. Mudex provides a user-centric experience with market-leading institutional-grade security and the ability to trade over 650 different crypto assets. CoinSwitch exchanges and trades crypto in a secured manner, using enterprise-driven custody providers to store user crypto. ZebPay is one of India’s oldest exchanges, with over 5 million users on the platform.
CoinDCX is one of the largest and most trusted exchanges in India. CoinDCX safeguards user accounts utilizing best-in-class data encryption and cold storage and provides insurance for its users against breaches. Additionally, CoinDCX has a Crypto Investor Protection Fund (CIPF) with total assets of ₹57.5 Cr. Paxful is a peer-to-peer cryptocurrency trading marketplace that encourages users to own and control their assets. Additionally, Paxful offers global escrow protection and compliance guidelines to users and partners.
FAQs- 5 Crypto exchanges in India
Are cryptocurrencies legal tender in India?
Cryptocurrencies are not legal tender in India, but transactions and investments are permitted.
What is the tax on crypto gains in India?
A flat 30% tax applies to gains from Virtual Digital Assets (VDAs) in India.
What are some key security features of compliant crypto platforms in India?
Compliant platforms feature FIU registration, strong KYC/AML, secure INR transactions, and cold storage for crypto.
