ZebPay is one of India’s oldest and most recognised cryptocurrency exchanges, founded in 2014 by Sandeep Goenka, Saurabh Agrawal, and Mahin Gupta. It has survived India’s turbulent crypto regulatory history — including the 2018 RBI banking ban — and continues to operate as of 2026. The question of its legality is important for millions of Indian crypto investors.
Yes, ZebPay Is Legal in India
ZebPay is fully legal to use in India. It is registered as a reporting entity with the Financial Intelligence Unit — India (FIU-IND) under the Prevention of Money Laundering Act (PMLA), which is the primary compliance requirement for crypto exchanges operating in India.
As of 2026, there are 49 crypto exchanges registered with the FIU-IND, and ZebPay is among the leading compliant domestic platforms, alongside CoinDCX, CoinSwitch, Mudrex, and Unocoin. FIU registration means ZebPay is legally authorised to operate as a Virtual Asset Service Provider (VASP) in India, must maintain KYC and AML standards, report suspicious transactions, and submit data to Indian financial authorities.
ZebPay’s Journey Through India’s Crypto Regulations
ZebPay had a dramatic brush with closure in 2018 when the RBI banned banks from dealing with cryptocurrency exchanges, forcing it to briefly shut down Indian exchange operations and move its headquarters to Singapore. However, the Supreme Court of India, in a landmark March 2020 ruling in Internet and Mobile Association of India v. Reserve Bank of India, struck down the RBI’s circular as unconstitutional, restoring banking access to crypto exchanges.
Since that ruling, ZebPay has rebuilt its Indian operations, re-registered with FIU-IND, and resumed full services including INR deposits and withdrawals via UPI and IMPS. It currently supports approximately 100 cryptocurrencies and stores 98% of funds in offline cold wallets for security.
Is Crypto Legal in India?
Yes — buying, selling, and holding cryptocurrencies is legal in India. Crypto assets are classified as Virtual Digital Assets (VDAs) under the Income Tax Act, 1961. Indian traders can legally trade on FIU-registered exchanges like ZebPay. Crypto is not legal tender and cannot be used for payments, but it is a recognised investment asset class.
Tax obligations: All crypto gains are taxed at a flat 30% with no deductions allowed and a 4% cess. A 1% TDS applies on transactions above Rs 50,000. ZebPay, as an FIU-registered exchange, automatically deducts TDS and reports all transactions to the Income Tax Department.
One Important Caution: Platform Risk
While ZebPay is legally registered and compliant, user reviews as of 2025-2026 have raised concerns about customer service quality, unexplained fee deductions, and withdrawal delays experienced by some users. These are platform risk issues, not legal issues. ZebPay is legally authorised to operate, but traders should exercise due diligence, maintain their own records of all transactions, and not store large amounts of crypto on any exchange for extended periods.
Final Thought
ZebPay is legal, FIU-registered, and among India’s most established crypto exchanges. If you want to trade cryptocurrency in India while staying compliant with law, using an FIU-registered platform like ZebPay is the correct approach. Always report your crypto gains in your Income Tax Return under Schedule VDA, and keep detailed records of all deposits, trades, and withdrawals.
Frequently Asked Questions (FAQs)
Q1. Does ZebPay deduct TDS on crypto transactions?
A: Yes. As a registered VASP under Indian law, ZebPay is required to deduct 1% TDS on eligible crypto transactions above Rs 50,000 under Section 194S of the Income Tax Act. This TDS is deposited with the Income Tax Department and you can claim it against your tax liability.
Q2. Is ZebPay regulated by SEBI?
A: No. As of 2026, India does not have a dedicated crypto regulator equivalent to SEBI for cryptocurrencies. ZebPay is regulated under the PMLA framework administered by FIU-IND. SEBI may regulate certain crypto derivative products in the future but has not done so comprehensively yet.
Q3. What happens if ZebPay faces regulatory action?
A: Being FIU-registered provides legal legitimacy and oversight. If ZebPay were to face regulatory action, Indian authorities would have jurisdiction and recourse — unlike with unregistered offshore platforms. This is a key advantage of using regulated domestic exchanges.
Q4. Can I withdraw crypto from ZebPay to an external wallet?
A: Yes, ZebPay allows crypto withdrawals to external wallets after completing second-level KYC verification. However, FEMA and FIU guidelines apply to international transfers of cryptocurrency, and cross-border crypto transactions remain in a regulatory grey zone. For domestic wallet transfers, standard procedures apply.
