WazirX was once India’s largest cryptocurrency exchange by trading volume, with over 15 million users. Its story in 2024-2026 has been turbulent — a massive cyberattack, restructuring proceedings in Singapore, and ongoing legal battles. Yet the basic question many potential users ask remains: is WazirX legal in India? The answer requires understanding both the platform’s status and India’s broader crypto legal framework.
Is Cryptocurrency Legal in India?
Yes. Cryptocurrency is legal in India, but it is not recognised as legal tender and cannot be used to pay for goods or services. The Supreme Court of India’s landmark 2020 ruling overturned an RBI banking ban on crypto, restoring legal banking access for crypto exchanges. The Union Budget 2022 introduced a formal taxation framework: a flat 30% tax on all Virtual Digital Asset (VDA) gains and a 1% TDS on most transactions.
WazirX’s Legal Status: Registered but Challenged
WazirX is operated by Zanmai Labs Pvt. Ltd., a registered Indian company. It has registered with the Financial Intelligence Unit-India (FIU-IND) as a Virtual Asset Service Provider (VASP) under the Prevention of Money Laundering Act (PMLA), which is a mandatory compliance requirement for crypto exchanges in India.
However, WazirX has also faced serious regulatory and legal challenges. The Enforcement Directorate (ED) conducted investigations into the platform over alleged FEMA and PMLA violations. WazirX has filed petitions challenging ED summons in multiple High Courts.
The 2024 Cyberattack and Restructuring
In July 2024, WazirX suffered a devastating cyberattack attributed to North Korea’s Lazarus Group, resulting in losses of approximately $230 million (over ₹1,900 crore), affecting around 15 million users. Following the hack, the Singapore-based entity Zettai Pte Ltd (responsible for crypto-to-crypto operations) underwent a restructuring scheme approved by the Singapore High Court in October 2025.
Indian users filed objections and litigation against the restructuring plan. As of early 2026, users are in the process of recovering a portion of their funds under the approved scheme.
Cryptocurrency as ‘Property’: A Landmark Court Ruling
In a significant 2025 ruling arising from the WazirX hack, the Madras High Court held that cryptocurrency constitutes ‘property’ under Indian law. This is a landmark recognition that provides digital asset holders with legal standing to seek protection of their crypto holdings, including in cases of fraud or exchange failures.
Final Thought
WazirX is a legally registered company in India and is FIU-compliant. Crypto trading in India is legal. However, the WazirX hack and its aftermath highlight the very real risks of keeping large amounts of crypto on any exchange. Always use registered, FIU-compliant exchanges, report your crypto income accurately, and never invest more than you can afford to lose in this highly volatile asset class.
Frequently Asked Questions (FAQs)
Q1. Is WazirX safe to use in 2026?
WazirX is legally registered and FIU-compliant. However, the 2024 cyberattack raised serious questions about its security. The platform is undergoing restructuring to reimburse users. Whether it is safe to use depends on its post-restructuring security measures and the platform’s restart status. Always verify current status before depositing funds.
Q2. How is crypto income taxed in India?
All income from the transfer or sale of Virtual Digital Assets (VDAs) including crypto is taxed at a flat 30% under Section 115BBH of the Income Tax Act. A 1% TDS is deducted on most transactions. Losses from crypto cannot be set off against other income sources.
Q3. Are crypto exchanges in India required to be registered?
Yes. Under the PMLA, all Virtual Asset Service Providers (VASPs) operating in India must register with FIU-IND. Major exchanges including WazirX, CoinDCX, CoinSwitch, and Binance have completed this registration as of 2025.
Q4. What legal protection do crypto users have if an exchange is hacked?
Currently, there is no dedicated insurance or guarantee fund for crypto users in India. The Madras High Court’s 2025 ruling recognising crypto as property provides some legal standing for users to seek remedies, but recovery from exchange hacks remains largely dependent on the exchange’s restructuring plan.
