Is KuCoin Legal in India? FIU Status, Penalty and Tax
Yes, KuCoin is FIU-registered in India after a ₹34.5 lakh penalty in 2024. See its status, why it was blocked first, TDS rules and the risks that remain.
Yes, KuCoin is legal to use in India. Its operator, Peken Global Limited of Seychelles, is on the government's list of 54 virtual digital asset (VDA) service providers registered with FIU-IND, tabled in the Lok Sabha on 30 March 2026. It registered in March 2024, after FIU-IND fined it ₹34.5 lakh for serving Indians without registering.
Key takeaways
- KuCoin (Peken Global Limited, Seychelles) is entry 41 on the government's list of 54 FIU-IND registered VDA service providers, as of 9 March 2026.
- FIU-IND named KuCoin among nine offshore exchanges in December 2023, and its apps and website were blocked in India.
- FIU-IND fined KuCoin ₹34.5 lakh in an order dated 22 March 2024. KuCoin announced its registration the next day and was later unblocked.
- KuCoin deducts 1% TDS for Indian users and asks for a PAN, but rupees move only through its P2P market, which carries bank-freeze risk.
- Registration is an anti-money-laundering requirement, not a licence. KuCoin is still an offshore company, so your recourse in India is limited.
KuCoin in India at a glance (3 October 2026)
| Question | Answer |
|---|---|
| Is it legal to use? | Yes. KuCoin is registered with FIU-IND as a reporting entity. |
| Legal company | Peken Global Limited, Seychelles (entry 41 on the March 2026 government list) |
| FIU-IND penalty | ₹34.5 lakh, order dated 22 March 2024 |
| On a blocking list? | Yes, from December 2023, before it registered. Not in the 2025 or 2026 actions. |
| Website from India | Opened normally when we checked from an Indian broadband connection on 3 October 2026 |
| Rupee deposits | P2P only: you pay another user by UPI, IMPS or bank transfer |
| 1% TDS | Deducted on sells and crypto-to-crypto trades; PAN required |
| Our score | 6.9/10, #11 of 12 in our app ranking |
Fees, coin listings and features are in our full KuCoin review. This page deals only with whether KuCoin is legal and how much you can rely on it from India.
Is KuCoin FIU registered?
Yes. On 30 March 2026 the Minister of State for Finance answered Lok Sabha Unstarred Question No. 5805 with the list of 54 VDA service providers registered with FIU-IND as of 9 March 2026. Entry 41 is Peken Global Limited, trade name KuCoin, country Seychelles. It is one of only a handful of foreign platforms on the list, alongside Binance (entry 47) and Bybit (entry 48).
Registration means KuCoin must verify Indian users, keep records and report suspicious transactions to FIU-IND under the Prevention of Money Laundering Act (PMLA). It is not approval of KuCoin's business. The same Lok Sabha answer explains that FIU-IND keeps its register private because a public list could make users think registered platforms are licensed or endorsed, and expect protection that does not exist. No RBI licence exists for crypto exchanges either, as our page on the "RBI-approved" exchange myth shows. You can compare KuCoin with Indian platforms on our FIU-registered exchanges list.
Why KuCoin is on both lists
The Lok Sabha answer also has a second annexure: 53 offshore platforms that FIU-IND has directed to have their apps and websites taken down at some point. KuCoin is entry 2 on that list too. That looks contradictory, but it is a record of past action, not its current status. Here is the sequence:
| Date | What happened |
|---|---|
| March 2023 | Crypto platforms serving Indians became reporting entities under the PMLA and had to register with FIU-IND. |
| December 2023 | FIU-IND issued notices under Section 13 of the PMLA to nine offshore exchanges, KuCoin and Binance among them, and asked for their websites to be blocked. |
| January 2024 | The nine platforms' apps were removed from Indian app stores. |
| 22 March 2024 | FIU-IND's Director imposed a ₹34.5 lakh penalty on KuCoin for its non-compliance. |
| 23 March 2024 | KuCoin announced it had registered with FIU-IND, the first offshore exchange to do so. Its website and app were then unblocked in India. |
| June to August 2024 | FIU-IND fined Binance ₹18.82 crore, and Binance resumed Indian services after registering, as our page on whether Binance is legal in India explains. |
| 9 March 2026 | KuCoin was still on the list of 54 registered providers that the government tabled on 30 March 2026. |
KuCoin was not among the 25 platforms FIU-IND acted against in October 2025, nor the 15 it named in September 2026, which we covered in FIU-IND's action against 15 offshore exchanges. Bybit went through a similar path later, with a ₹9.27 crore penalty in January 2025; see is Bybit legal in India.
KuCoin compared with other foreign exchanges
Most large foreign exchanges were caught by the same rules. Only some chose to pay, register and stay. This table uses the two annexures of the 30 March 2026 Lok Sabha answer and FIU-IND's penalty orders.
| Exchange | On the list of 54 registered? | On the takedown list of 53? | FIU-IND penalty |
|---|---|---|---|
| KuCoin | Yes (entry 41) | Yes (entry 2), before registering | ₹34.5 lakh (March 2024) |
| Binance | Yes (entry 47) | Yes (entry 1), before registering | ₹18.82 crore (June 2024) |
| Bybit | Yes (entry 48) | Yes (entry 13), before registering | ₹9.27 crore (January 2025) |
| MEXC Global | No | Yes (entry 8) | None found |
| Bitget | No | Yes (entry 14) | None found |
The lesson: "registered" and "was once blocked" can both be true. What matters is the platform's status today.
Is KuCoin safe for Indian users?
Legal does not mean low risk. Weigh these points before you deposit.
- Offshore company: Peken Global Limited is based in Seychelles. If something goes wrong, you cannot take a complaint to an Indian regulator the way you could with a bank, and a court case abroad is slow and costly.
- US criminal case: on 27 January 2025 Peken Global pleaded guilty in the United States to running an unlicensed money transmitting business. It agreed to pay more than $297 million and to leave the US market for at least two years. The case was about weak anti-money-laundering checks, not lost customer funds.
- Past hack: in September 2020 attackers took about $280 million from KuCoin hot wallets. Most of it was recovered or frozen with help from other projects and exchanges, and KuCoin said it covered the rest from its insurance fund, so users were made whole.
- P2P rupee risk: because KuCoin has no direct INR bank deposit, you buy and sell through other users. A payment from a stranger linked to fraud can get your bank account frozen. Our guide to P2P trading and bank freezes explains how to reduce that risk.
- Exchange failure risk: any exchange can stop withdrawals. Read what happens to your crypto if an exchange shuts down and keep long-term holdings in your own wallet.
KuCoin also has its own token, KCS, priced at ₹706.10 on our KuCoin token price page. Owning KCS does not make the exchange safer for you.
How KuCoin handles TDS and tax
KuCoin's India tax help page treats you as an Indian taxpayer if both your KYC documents and your IP address are Indian. It asks for your PAN and deducts 1% TDS when you sell crypto for INR, when you buy or sell in crypto-to-crypto markets, and when you sell on P2P. It does not deduct TDS when you buy crypto with INR or when you withdraw. It pays the TDS to the Income Tax Department, and it should show in your Form 26AS after the quarter ends.
TDS is only an advance. Profits are taxed at a flat 30% plus 4% cess under the rules introduced as Section 115BBH, with no deduction except the cost of buying. Losses cannot be set off or carried forward. The 1% TDS thresholds are ₹50,000 a year for specified persons and ₹10,000 for others.
| Example on KuCoin | Amount |
|---|---|
| You swap altcoins worth ₹1,00,000 for USDT | ₹1,000 TDS deducted |
| Your cost of those altcoins | ₹70,000 |
| Taxable gain | ₹30,000 |
| Tax at 30% plus 4% cess | ₹9,360 |
| Still to pay after TDS credit | ₹8,360 |
Report every trade in Schedule VDA. Our guides on 1% TDS on crypto and crypto tax in India have the full rules.
What this means for you
- You can use KuCoin legally. It is registered and deducts TDS, so trades on it are visible to the tax department like trades on an Indian exchange.
- Think about why you need it. KuCoin lists hundreds of coins that Indian exchanges do not. If you only trade the large coins, an Indian exchange with direct UPI deposits is simpler. CoinDCX (8.4/10) and CoinSwitch (8.1/10) top our list of the best crypto apps in India.
- Move funds in crypto, not cash, where you can. Buying USDT on an Indian exchange and sending it to KuCoin avoids P2P bank risk. Our guide on moving crypto between exchanges shows the steps.
- Keep your records. Download KuCoin's trading report every year so your Schedule VDA matches the TDS in your Form 26AS.
How to check any exchange
- Find the legal company name and the FIU-IND registration number (it starts with "VA") in the platform's terms or compliance pages.
- Check that company against the 54 registered providers tabled in the Lok Sabha on 30 March 2026, which our FIU list follows.
- Search for FIU-IND penalty orders, show-cause notices and blocking notices that name it.
- Check whether it deducts 1% TDS and asks for your PAN. A platform that does neither is not following Indian rules.
- Make a small test withdrawal before you deposit more.
Other guides in this series cover WazirX, Bitget, MEXC and Pi42.
Related guides
- Is Kraken legal in India?: what the FIU block means.
- Is BingX legal in India?: the FIU takedown and your funds.
- Is Gate.io legal in India?: ban status and what to do.
FAQ
Is KuCoin legal in India in 2026?
Yes. Peken Global Limited, which runs KuCoin, is on the government's list of 54 FIU-IND registered VDA service providers tabled in the Lok Sabha on 30 March 2026.
Is KuCoin banned in India?
Not now. KuCoin was blocked after FIU-IND's December 2023 notices, but it paid a ₹34.5 lakh penalty, registered in March 2024 and was unblocked.
When did KuCoin register with FIU-IND?
KuCoin announced its registration on 23 March 2024, a day after FIU-IND's penalty order. It was the first offshore exchange to register.
Does KuCoin deduct TDS in India?
Yes. KuCoin deducts 1% TDS on sells, crypto-to-crypto trades and P2P sales for users with Indian KYC and IP addresses, and requires a PAN.
Can I deposit INR on KuCoin?
Only through its P2P market, where you pay another user by UPI, IMPS or bank transfer. There is no direct bank deposit, so follow P2P safety rules.
Is KuCoin RBI approved?
No, and no crypto exchange is. The RBI does not license crypto exchanges; the registration that Indian law requires is with FIU-IND, which KuCoin holds.
Is KuCoin safe after its US guilty plea?
The January 2025 plea was about anti-money-laundering failures in the US, not lost customer funds. It is still an offshore exchange, so keep only trading balances there.
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.
