Is Bitbns Safe and Legal in India? Withdrawals Explained
Bitbns is FIU-IND registered, so it is legal, but a 2022 hack, months-long withdrawals and failed court cases call for caution. The facts and what to do.
Bitbns is legal in India, but its safety record is poor. Bitbns Internet Private Limited is entry 6 on the government's list of 54 crypto platforms registered with FIU-IND, tabled in the Lok Sabha on 30 March 2026. Registration only covers anti-money-laundering rules, though, and Bitbns users have faced a 2022 hack it disclosed only in 2023, rupee withdrawals that took months and two failed High Court cases, so we would not keep money there that you cannot afford to have stuck.
Key takeaways
- Bitbns Internet Private Limited is No. 6 on the official list of 54 registered providers (as of 9 March 2026). Buyhatke Internet Private Limited, which the Bitbns website names as its operator, is No. 4.
- Bitbns is not on the list of 53 offshore platforms directed for takedown. Using it is legal.
- Bitbns went offline on 1 February 2022 in what it called maintenance. In March 2023 its chief executive admitted a security incident, after an independent investigator alleged a hack of about $7.5 million.
- Its own help page says free rupee withdrawals take 30 to 60 working days; instant ones cost ₹4 to ₹9.
- In February and July 2026 the Delhi High Court dismissed users' cases, saying the dispute is private and belongs in civil, consumer or criminal courts. We found no published recovery plan.
Bitbns in India at a glance (3 October 2026)
| Question | Answer |
|---|---|
| Registered with FIU-IND? | Yes. Bitbns Internet Private Limited is entry 6 of 54; Buyhatke Internet Private Limited is entry 4 |
| On the takedown list of 53? | No |
| Who the website names as operator | Buyhatke Internet Pvt. Ltd. (terms last updated 11 January 2026) |
| Launched | December 2017; chief executive Gaurav Dahake |
| Known security incident | 1 February 2022; admitted in March 2023 |
| Normal INR withdrawal time (its help page) | 30 to 60 working days, free |
| Instant INR withdrawal | ₹4 to ₹9 per withdrawal |
| Spot trading fee | 0.25% flat; lower tiers if you pay fees in its BNS token |
| Court cases | Writ dismissed 11 February 2026; appeal dismissed 2 July 2026 |
| Our ranking | Not among the 12 apps we rank |
Is Bitbns legal in India?
Yes. Crypto is not banned in India, and since a Finance Ministry notification of 7 March 2023, every platform serving Indian users must register with FIU-IND as a reporting entity under the Prevention of Money Laundering Act. On 30 March 2026 the Minister of State for Finance answered Lok Sabha Unstarred Question No. 5805 with the list of 54 registered VDA service providers as of 9 March 2026. Bitbns Internet Private Limited, trade name Bitbns, is entry 6. Buyhatke Internet Private Limited, listed with the trade name Onramp, is entry 4. Neither carries the note that marks a platform as wound up.
The link between the two matters. The Bitbns website calls itself "a product of Buyhatke Internet Pvt. Ltd." in its terms, and its home page names Buyhatke as the FIU-registered entity. Before you deposit, check which company your account statements and TDS certificates are issued by. Our FIU-registered exchanges list shows both entries.
Remember what registration is not. The same Lok Sabha answer warns that a public list could make people think registered platforms are licensed or endorsed, and could mislead users into expecting regulatory protection after a fraud or loss. There is no RBI licence for crypto exchanges either, as our page on the "RBI-approved" exchange myth explains.
The Bitbns withdrawal problem: what happened
People searching "Bitbns withdrawal problem" are usually waiting for money. Here is the record in date order, using Bitbns's own statements and court records:
| Date | What happened |
|---|---|
| 1 February 2022 | Bitbns went offline, describing it as system maintenance. Users later told the Delhi High Court that withdrawals were capped at ₹5,000 a day after this incident. |
| July 2022 | Rupee withdrawals ran past Bitbns's stated window. It said they were "delayed due to some issues from relevant authorities". |
| August 2022 | Bitbns said police had frozen its bank account over cybercrime complaints, which can block a whole account over a small sum. It said crypto withdrawals were still working and planned USDT P2P withdrawals. |
| 1 March 2023 | After an independent blockchain investigator alleged a hidden hack of about $7.5 million, Bitbns's chief executive admitted the incident. He said the system was taken offline after unusual activity on its servers, and did not confirm the figure. |
| 26 and 27 June 2023 | Some users saw zero balances; Bitbns said it happened during a database upgrade and paused the platform to fix it. |
| 25 December 2024 | Bitbns said it had processed 541 withdrawals between 19 and 24 December 2024. |
| January 2025 | The Delhi High Court sought replies from the Centre, the RBI and SEBI on a petition by Bitbns users. |
| May 2025 | A petitioner said a ₹5,000 daily withdrawal limit was imposed on his account without notice. |
| 11 February 2026 | The High Court (single judge) dismissed that writ, holding that Bitbns is a private company, not the "State", and refused a CBI probe. |
| 2 July 2026 | A Division Bench dismissed an appeal by a group of users, calling it a private commercial dispute. |
Bitbns's own help page on rupee withdrawals, last updated on 27 June 2023, says normal withdrawals are free but take 30 to 60 working days, while instant withdrawals cost ₹4 to ₹9. Compare that with registered rivals that pay out by IMPS within minutes. We found no published plan from Bitbns to clear old withdrawal requests by a set date.
What the Delhi High Court decided
Users asked the court for a CBI or special investigation team, a regulatory framework, the release of their funds and compensation. Both benches refused. In February 2026 Justice Purushaindra Kumar Kaurav said there was no material showing exceptional circumstances, noted that no FIR had been filed, and told the petitioner to file an FIR or approach a magistrate. In July 2026 the Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia held that the large number of affected users did not turn the case into a public law matter, and pointed users to civil, consumer and other remedies.
The rulings did not decide whether Bitbns owes anyone money. They decided that a writ petition is the wrong route. For a user, that means the next step is a police complaint, a consumer case or a civil suit, not another petition asking the court to regulate crypto.
Is Bitbns safe now?
Legal and safe are different questions. On legality, Bitbns passes: it is registered and not blocked. On safety, the facts above are hard to ignore: a security incident it disclosed only a year later, months-long rupee withdrawals, unresolved user complaints and no recovery plan we could find. Bitbns still lists spot trading in more than 450 assets, margin trading, fixed deposits and futures, but products do not fix a withdrawal problem.
Compare this with WazirX after its 2024 hack, which went through a court-approved scheme to return funds. Whatever you think of that scheme, users at least had a process and a timetable. Our guide to what happens to your crypto if an exchange shuts down explains where users stand when a platform cannot pay. For a registered Indian exchange with free, fast rupee withdrawals, see our Giottus safety guide.
Bitbns fees
| Item | Fee (Bitbns fee page) |
|---|---|
| Spot trading, standard | 0.25% flat |
| Spot trading, paying fees in BNS | 0.25% down to 0.03%, by VIP tier |
| Futures | 0% maker (introductory), 0.1% taker |
| Margin borrowing | Borrowers pay 0%; lenders pay a 15% fee, lower with BNS |
| INR withdrawal | Free (30 to 60 working days) or ₹4 to ₹9 (instant) |
A ₹1,00,000 buy at 0.25% costs ₹250 before any GST shown at checkout. Fees are not the main risk here; access to your money is.
What to do if your money is stuck on Bitbns
- Try a small crypto withdrawal first. Send a small amount of a coin to a wallet you control or to a registered exchange. If it arrives, move the rest in steps. Our guide to moving crypto between exchanges shows how to pick the right network.
- Put every request in writing. Raise a ticket from your registered email, note the ticket number, and screenshot your balance, pending withdrawals and transaction history.
- Escalate inside the company. Write to the grievance or compliance contact on the Bitbns website and give a deadline for a reply.
- Use the routes the High Court named. File a complaint on the National Cyber Crime Reporting Portal or call 1930 if you suspect fraud, ask the police to register an FIR, or file a consumer complaint. Our guide on how to report a crypto scam in India explains each route.
- Avoid P2P sales to strangers to get out. Selling USDT to unknown buyers can get your own bank account frozen; read P2P trading and bank freeze risks first.
- Never pay a "recovery agent". People who promise to release stuck exchange funds for a fee are almost always scammers.
If you do get rupees out, our guide to withdrawing crypto to your bank account covers the safe way to cash out elsewhere.
TDS and tax on Bitbns trades
As a registered Indian platform, Bitbns is responsible for deducting 1% TDS on your crypto sales. Check that each deduction appears in your Form 26AS; if one is missing, raise it with Bitbns in writing. Gains are taxed at a flat 30% plus 4% cess under the rules introduced as Section 115BBH, with no deduction except the cost of acquisition, and you report trades in Schedule VDA.
| Example | Amount |
|---|---|
| Bitcoin bought on Bitbns | ₹60,000 |
| Sold on Bitbns for | ₹90,000 |
| TDS deducted (1% of sale) | ₹900 |
| Tax on ₹30,000 gain at 31.2% | ₹9,360 |
| Loss on funds stuck or lost on the platform you can set off | ₹0 |
The last row is the painful one: losses on crypto cannot be set off or carried forward, even if the platform is the reason you lost money. See our crypto tax in India guide.
How to check any exchange before you deposit
- Find the legal company name and FIU-IND registration number in the terms, and match it to the official list of 54.
- Check that the company on your statements is the same one on the list.
- Search for hacks, withdrawal pauses and court cases, and read how the platform explained them.
- Read the help page on rupee withdrawals: anything longer than a few working days is a warning sign.
- Make a small test withdrawal before you deposit more.
- Prefer platforms with a clear track record. Our best crypto apps in India ranking scores 12 of them.
Offshore platforms carry a different risk again: BingX, Gate.io and MEXC are on the government's takedown list. Among Indian names, Unocoin has the longest history.
FAQ
Is Bitbns FIU registered?
Yes. Bitbns Internet Private Limited is entry 6 on the list of 54 VDA service providers registered with FIU-IND as of 9 March 2026, and Buyhatke Internet Private Limited, named on the Bitbns website as its operator, is entry 4.
Is Bitbns legal in India?
Yes. It is registered with FIU-IND and is not on the government's list of 53 platforms directed for takedown. Registration does not mean the government guarantees your funds.
Why is my Bitbns withdrawal pending?
Bitbns's help page says free rupee withdrawals take 30 to 60 working days, and it has blamed delays on bank account freezes. Users have reported waits far longer than that.
Is Bitbns safe to use now?
It is legal, but it had a security incident in February 2022 that it admitted only in March 2023, plus long withdrawal delays and court cases. Do not keep money there that you may need soon.
Did the court order Bitbns to release funds?
No. The Delhi High Court dismissed users' cases in February and July 2026 because a writ was the wrong route, and pointed them to FIRs, consumer forums and civil suits.
Was Bitbns hacked?
Yes. Its chief executive admitted in March 2023 that a security incident hit the platform on 1 February 2022; an independent investigator put the loss at about $7.5 million, a figure Bitbns did not confirm.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
