India Crypto License 2026: Gateway to 1 Billion Users

What is the Indian Crypto License, Exactly? 

A crypto license in India entails registration with the local regulatory authority, the Financial Intelligence Unit (FIU-IND). This framework allows foreign entities to register without incorporating a local Indian subsidiary. 

Right now, the Indian registration is one of the cheapest options not only in Asia but worldwide, allowing for a budget-friendly incorporation and licensing of a crypto business. 

This is a drastic shift from how the regulatory environment was just a year ago, when the FIU blocked non-compliant offshore URLs in 2024/2025, effectively forcing global exchanges to register or lose access to the market. This “Digital Strike” removed giants like Binance and KuCoin for non-compliance, and they have only recently started returning to the local scene. 

The Indian crypto registration is now viewed as a strategic move. Consistently ranked #1 in grassroots crypto adoption, the Indian market offers a massive, tech-savvy user base that is too valuable for any business to ignore. By securing an FIU status, entrepreneurs can market their platforms as safe and legitimate in a landscape where trust remains the most important asset and gain instant access to the world’s biggest database of crypto-savvy customers. 

What is the Process and Requirements?

To secure an official position in the local market, entities must register as local VASPs (Virtual Asset Service Providers), following a set of requirements under the Prevention of Money Laundering Act (PMLA) of 2002:

• Mandatory KYC/AML compliance: Operating as a “Reporting Entity” under the PMLA;
• Reporting of Suspicious Transactions: Filing Suspicious Transaction Reports (STRs) to the FIU;
• Travel Rule Compliance: Adhering to FATF guidelines for tracking transfers exceeding 50,000 INR;
• Principal Officer: Appointing a designated officer responsible for compliance.

India offers a priceless opportunity for global expansion, and there’s a clear tendency for long-term growth. The earlier you seize the opportunity, the further you’ll get against your market competitors. 

Things to Watch Out For When Registering an Indian VASP

Let’s expand on what we’ve mentioned above: the Indian FIU registration is not a standalone license but rather a permission for existing entities. Therefore, it requires that applicants must already hold an incorporated entity in their home jurisdiction and have a valid operational status before expanding to the Indian market. Besides, every company must hold a valid license in case its domestic regulation mandates one. 

Therefore, an active foreign company is an obligatory requirement for commencing the registration process with the FIU. What does it entail for crypto company owners? Juggling two registrations at the same time can be a challenge, especially for young businesses. Starting out elsewhere and expanding the global coverage to India is a task you can handle with a reliable lawyer on your side. LegalBison does it all for you from the very beginning. 

Are the long-term benefits of expanding to India worth it? Absolutely. Gaining this registration unlocks the door to the world’s number one market for grassroots crypto adoption, granting you direct access to a massive audience of active, tech-savvy traders. It allows you to capture and maintain this immense volume in a less crowded landscape, thus instantly getting ahead of your competitors. 

Benefits of India’s Crypto Framework: Low Cost, High Compliance

It is worth noting that India stands out for its remarkably low financial barrier to entry. Unlike major hubs requiring massive capital or fees, India mandates neither, allowing foreign entities to access the vast local market efficiently: 

• No Government Fees: There are no application fees payable to the government;
• No Capital Requirements: You do not need to deposit or maintain a minimum authorized share capital;
• No Renewal Fees: There are no annual government costs to keep the license active.

However, low cost does not mean low responsibility. The framework demands rigorous ongoing monitoring. Registered entities must maintain comprehensive transaction records and customer data for five years to support regulatory oversight.

How Can LegalBison Help? 

India is a priceless opportunity for a grand global crypto market entry, but it should be approached with caution. Despite the multiple benefits, the local regulations are not the easiest to comply with, especially for young companies and startups. LegalBison provides end-to-end support for the FIU-IND VASP Registration process. 

We handle the complexities so you don’t have to:

• Turnkey Registration: We manage the entire application, including the registration in your domestic market (if required), before applying for the Indian license; 
• Principal Officer Assistance: We assist in the mandatory appointment of a Principal Officer to liaise with authorities;
• Compliance Framework: We help draft the required AML/CFT guidelines and KYC policies to ensure you meet the “Reporting Entity” standards;
• Foreign Entity Setup: We structure your application so you can operate in India as a foreign entity, leveraging the tax benefits of your home jurisdiction.

You can focus entirely on capturing the market, while LegalBison is dealing with the administrative part. This speeds up and simplifies the entry, increasing the cost-effectiveness tenfold. 

Don’t wait for your competitors to get ahead in the game: while you’re considering the options, they are already securing spots in what’s projected to be one of the most beneficial markets for crypto in 2026.