By Lal Singh WazirX is one of the most popular cryptocurrency exchanger for Indian users for a long period of time. Yes, WazirX is legal to use in India, but the situation has been little complicated and constantly tracked by the government.
Legal framework for crypto in India:
India doesn’t accept cryptocurrencies as legal money, but it doesn’t stop people from trading them. The Supreme Court of India threw out an RBI circular in 2020 that basically stopped banks from doing business with crypto companies. This meant that trading was still allowed while authorities thought on the best way to keep an eye on the industry. That decision is the basis for how courts and exchanges work now.
WazirX: Problems with ownership and rules
WazirX started in India and made an agreement with Binance in 2019. There was a public argument about that purchase later on. Binance has maintained at times that it didn’t own WazirX, yet WazirX and earlier statements said it did. The ambiguous history of ownership made people wonder throughout later investigations.
From 2021 to 2022, Indian government, especially the ED, checked WazirX/Zanmai Labs for money laundering that was believed to be happening by suspicious accounts and payment flows. While doing the investigation, the ED freezed some assets. WazirX publicly declared it cooperated and later said that bank accounts were unfrozen after cooperation and internal AML checks. For some times such types of problems affected banking, withdrawals and public trust.
Current Operational Status:
After restructuring and taking legal action in 2024–2025, WazirX focused on bringing back INR banking and withdrawals in stages. The company then announced recovery-token initiatives and plans to relaunch to make up for the problems users had and go back to normal business. Recent industry reports indicate that WazirX is still active in the Indian market. Several times it was named as one of the FIU-registered crypto players in media publications. However the platform is still being monitored by the government and is involved in court cases. Please refer to the WazirX’s official communications and your account page for the most up-to-date information if you have money invested on their platform.
What this means for Indian Users:
- Using WazirX is not against the Indian law for trading crypto but crypto exchanges and their customers must fulfill their KYC (first and important step), Complete all Tax formalities and AML requirements. The Supreme Court’s of India strictly instructed that these procedures must be followed.
- Past investigations by the ED reveal that currency exchange company can be investigated quite seriously, which can temporarily delay the withdrawals or banking services. Be realistic and maintain track of your every transactions you made, turn on KYC and know your tax responsibilities.
- If you are planning to invest your money for a long time, then think about spreading it out and not keeping it all on one exchange until you are sure of its legal and operational status.
Conclusion
WazirX is not banned or prohibited in India and trading on exchanges are still allowed. Still WazirX has had a difficulties with ownership issues and ED investigations that impacted the operations and user trust. The industry is changing rapidly. Court decisions and transparent rules are still shaping what exchanges need to accomplish. If you use WazirX or any other Indian crypto exchange services then make sure that your account is fully KYC-compliant, maintain all records for taxes as well as check for official platform updates before making any type of investment decisions.