Yes, Trust Wallet can be used in India. India does not have a blanket ban on using self-custody crypto wallets such as Trust Wallet. However, the exchanges, on-ramps and other service providers you use alongside the wallet may have FIU-IND, KYC, tax and reporting obligations.
FIU registration: FIU obligations depend on the VDA services a business provides. Simply using self-custody wallet software is different from using an exchange or fiat on-ramp.
KYC: Creating and using the core Trust Wallet does not require KYC, but third-party buy or sell providers may require it.
Safety: The December 2025 security incident affected Trust Wallet browser extension v2.68. Mobile-only users and other extension versions were not affected by that incident.
Tax: Income from transferring VDAs remains subject to the special 30% tax regime, while 1% TDS can apply to qualifying VDA transfers.
INR withdrawal: Trust Wallet cannot directly transfer INR to your bank account. You normally need an exchange or off-ramp.
Last updated: September 2026
September 2026 regulatory update: On September 9, 2026, FIU-IND issued non-compliance notices to 15 VDA service providers and also sought takedown of their apps and URLs in India. Trust Wallet was not among the 15 entities named in those notices. The action nevertheless reinforces an important point for Indian users: check the compliance status of the exchange, swap provider or fiat on-ramp you use alongside a self-custody wallet.
Is Trust Wallet Legal in India?
There is currently no blanket Indian prohibition on downloading or using a self-custody crypto wallet such as Trust Wallet.
However, “legal” does not mean every activity carried out through a crypto wallet is automatically compliant. Indian rules can apply depending on what you do with the assets and which service provider is involved.
For example, buying crypto with INR, using a third-party exchange or on-ramp, selling crypto, converting crypto to INR and transferring assets through regulated platforms can involve KYC, anti-money-laundering checks, tax and reporting obligations.
Trust Wallet should therefore be viewed separately from the exchanges and payment providers that may connect to it.
What Is Trust Wallet?
Trust Wallet is a self-custody, or non-custodial, crypto wallet.
With a standard self-custody wallet:
You control the private keys or recovery credentials.
Your assets remain recorded on the blockchain rather than being held in a conventional bank-style wallet account.
Transactions are authorised using your wallet credentials.
There is normally no central provider that can reverse an on-chain transaction for you.
This distinction matters because Indian compliance rules apply differently to self-custody software and businesses providing crypto exchange, custody, transfer or fiat-conversion services.
FIU-IND registration requirements for Virtual Digital Asset Service Providers are activity-based. India’s anti-money-laundering framework covers businesses carrying out specified VDA activities for or on behalf of other people, including:
Exchanging VDAs for fiat currency
Exchanging one VDA for another
Transferring VDAs
Safekeeping or administering VDAs or instruments that enable control over them
Providing certain financial services connected with the offer or sale of VDAs
A self-custody wallet interface, where users control their own keys, should therefore not be treated in exactly the same way as a centralised exchange or custodial platform.
The more important question for an Indian user is:
Which provider is actually processing the transaction?
If you use an integrated fiat on-ramp, exchange or other third-party service through Trust Wallet, review the legal entity providing that service, its KYC requirements and its compliance status.
What about buying crypto using UPI in Trust Wallet?
Trust Wallet has integrated Onramper to expand local fiat payment methods, including UPI for relevant markets such as India.
Onramper acts as an aggregator and can route a purchase through third-party on-ramp providers. That means Trust Wallet itself is not necessarily the entity processing your INR payment.
Before completing a purchase, check:
Which provider will process the transaction
Whether KYC is required
The fees and exchange rate
The provider’s availability and regulatory status in India
Is Trust Wallet Safe in India?
Trust Wallet is a self-custody wallet, so much of its security depends on how securely you protect your recovery credentials, device and blockchain approvals.
One important recent incident involved the Trust Wallet browser extension version 2.68 in December 2025.
Trust Wallet said the incident affected that specific browser-extension version. Mobile-only users and users of other browser-extension versions were not affected by the same incident, and affected extension users were told to move to version 2.69.
What the December 2025 incident means for users
The incident does not mean every Trust Wallet wallet was compromised. It does show that software-wallet users face risks beyond the blockchain itself, including malicious software updates, phishing, stolen recovery phrases and compromised browser environments.
If you use Trust Wallet today:
Download the app or extension only from official sources.
Keep your recovery phrase offline.
Never enter your recovery phrase into a website or support form.
Review token and dApp approvals before signing transactions.
Check the entire recipient address before transferring funds.
Consider keeping only the amount needed for regular transactions in a hot wallet.
Test large transfers with a smaller transaction first.
What if you used extension v2.68 during the affected period?
Users who were notified that their wallet was affected should follow Trust Wallet’s official security guidance. If a recovery phrase has been exposed, simply changing a local password is not enough; funds should be moved to a newly created wallet with new recovery credentials.
Does Trust Wallet Require KYC in India?
Trust Wallet does not require KYC simply to create a standard self-custody wallet, store crypto, or send and receive assets directly on supported blockchains.
KYC can still appear when you use a third-party service.
For example:
A fiat on-ramp used to buy crypto may require identity verification.
An Indian exchange used to sell crypto for INR will require KYC.
Other regulated service providers connected to the wallet may impose their own verification requirements.
In those cases, the KYC request comes from the service provider, not from the basic self-custody function of the wallet.
Why can an Indian exchange ask about my Trust Wallet address?
FIU-IND’s updated AML guidelines require regulated VDA service providers to assess transactions involving unhosted wallets.
If you transfer crypto between Trust Wallet and an Indian exchange, the exchange may therefore request additional information or carry out enhanced checks.
Depending on its risk controls, it may ask you to confirm that a wallet belongs to you or provide additional information about a transaction.
That does not mean Trust Wallet itself has introduced KYC. It means the regulated exchange is carrying out its own compliance obligations.
Can the Government Track Trust Wallet Transactions in India?
A self-custody wallet does not make blockchain transactions invisible.
Most major public blockchains permanently record transaction details such as:
Wallet addresses
Transaction amounts
Token movements
Transaction timestamps
Transaction hashes
A blockchain address does not automatically reveal a person’s name. However, once that address interacts with a KYC-verified exchange or other identifiable service, investigators or compliance teams may be able to associate the address with a real person using transaction records and blockchain analysis.
So while Trust Wallet itself may not require identity verification for basic use, users should not assume transactions are untraceable.
How to Withdraw From Trust Wallet to a Bank Account in India
You generally cannot send INR directly from Trust Wallet to an Indian bank account or UPI ID because Trust Wallet holds blockchain assets rather than an INR bank balance.
A typical withdrawal flow is:
Open an FIU-registered Indian exchange that supports the crypto and network you are transferring.
Copy the correct crypto deposit address from the exchange.
Send the crypto from Trust Wallet using the same blockchain network.
Sell the crypto for INR after the deposit arrives.
Withdraw the INR balance to your linked bank account using the options supported by the exchange.
Always confirm that the network selected in Trust Wallet matches the network supported by the receiving exchange. Sending assets through the wrong network can result in permanent loss.
You may also need the blockchain’s native token to pay the network fee.
Can Trust Wallet withdraw directly to UPI?
Not as a direct wallet-to-UPI transfer of your existing crypto balance.
A third-party provider may offer fiat purchase or off-ramp functionality, but this is a separate service with its own availability, KYC, fees and regulatory requirements.
For a conventional India cash-out flow, users commonly transfer the crypto to an Indian exchange, sell it for INR and withdraw the INR from there.
Is Trust Wallet Taxable in India?
Using or installing a wallet is not itself a taxable event.
Indian tax obligations depend on the crypto transaction.
From April 1, 2026, the Income-tax Act, 2025 applies. Under Section 194, income from the transfer of a Virtual Digital Asset is subject to a 30% special tax rate, subject to the statutory rules on deductions and losses.
Broadly:
Only the permitted cost of acquisition can be deducted while calculating VDA transfer income.
Losses from a VDA transfer cannot generally be set off against other income.
Such VDA losses cannot be carried forward under this special regime.
Applicable surcharge and cess can also affect the final tax liability.
What about 1% TDS?
The Income-tax Act, 2025 consolidates the relevant VDA TDS rule under Section 393.
A 1% TDS can apply to qualifying consideration paid for the transfer of VDAs, subject to the applicable thresholds and conditions.
On Indian exchanges, the platform may handle the applicable TDS process depending on how the transaction is structured.
Self-custody and peer-to-peer transactions can be more complicated because the statutory responsibility may fall on the person making the payment.
Are wallet-to-wallet transfers taxed?
Moving crypto between two wallets that you beneficially own does not ordinarily amount to selling the asset merely because its blockchain address changed.
However, swapping one token for another, selling for INR, spending crypto or interacting with protocols can have separate tax implications.
Keep transaction records so that you can distinguish a transfer between your own wallets from an actual disposal.
Are crypto transactions reported to the Income Tax Department?
India’s Income-tax Act, 2025 and Income-tax Rules, 2026 introduce reporting obligations for prescribed crypto-asset service providers.
This reporting framework is separate from the 30% tax and 1% TDS rules. It increases tax transparency around transactions conducted through covered crypto service providers.
Tax treatment can depend on individual circumstances. This article is for informational purposes and is not tax advice.
Trust Wallet vs an FIU-Registered Indian Exchange
Feature
Trust Wallet
FIU-registered Indian exchange
Type
Self-custody wallet
VDA service provider
Who controls wallet credentials?
User
Depends on platform custody model
KYC to create/use basic wallet
No
Yes
Direct INR access
Not through the core wallet
Typically supported
FIU compliance
Depends on regulated activity/provider involved
Registered reporting entity
Recovery
Recovery credentials are critical
Account-recovery processes may be available
Primary use
Self-custody, dApps and on-chain activity
Buying, selling and converting VDAs
The two products therefore serve different purposes.
Many users use an exchange for INR access and compliance-heavy transactions, and a self-custody wallet for direct blockchain activity. To understand the differences between these models in more detail, read our guide to custodial and non-custodial wallets.
Frequently Asked Questions
Conclusion
Trust Wallet can be used as a self-custody crypto wallet in India, but the wallet itself is only one part of the compliance picture.
FIU-IND obligations apply to businesses carrying out covered VDA services, while KYC generally appears when users interact with exchanges, fiat providers and other regulated services. Crypto transactions can also trigger India’s VDA tax and TDS rules regardless of whether the assets were held in Trust Wallet or somewhere else.
For Indian users, the practical approach is straightforward: protect your recovery phrase, verify the provider behind any fiat or swap service, use compliant exchanges when moving between crypto and INR, and maintain records of your transactions for tax purposes.
If you are navigating crypto wallets, taxes, and compliance in India, take time to educate yourself before transacting. Understanding the rules today can save you costly mistakes later. Discover more about the crypto ecosystem with Mudrex Learn or visit the official Mudrex YouTube channel for video guides.
FAQs
Is Trust Wallet banned in India?
No blanket ban currently prohibits Indians from using Trust Wallet as a self-custody wallet. Trust Wallet was also not among the 15 VDA service providers named in FIU-IND’s September 9, 2026 non-compliance action.
Is Trust Wallet FIU-registered?
FIU registration depends on whether an entity is carrying out covered VDA services. The core self-custody wallet should be distinguished from exchanges, custodians, fiat on-ramps and other third-party service providers connected to it.
Is Trust Wallet supported in India?
The wallet can be used in India. Availability of individual third-party services, payment methods, dApps or tokens can vary according to provider policies and Indian compliance requirements.
Is Trust Wallet taxable in India?
The wallet is not taxed. Crypto transactions such as selling, swapping, or spending can attract 30% tax and 1% TDS under Indian law.
How to use Trust Wallet in India?
Download the app, create a wallet, securely store your recovery phrase, and interact directly with supported blockchains.
Does Trust Wallet require KYC?
Not for basic self-custody wallet creation and use. Third-party fiat providers, exchanges and other regulated services connected to the wallet may require KYC.
How to withdraw from Trust Wallet in India?
You must send crypto from the wallet to an exchange, sell it for INR, and then withdraw to your bank or UPI.
How to avoid 30% tax on crypto in India?
You cannot legally avoid it. You can only stay compliant, plan transactions wisely, and consult a tax professional.
Is Trust Wallet free?
Trust Wallet is free to download. Blockchain network fees and fees charged by third-party swap, on-ramp or other service providers may still apply.
Does Trust Wallet have two-factor authentication?
A self-custody wallet does not work like a centralised exchange account. App-level passcodes or biometrics can protect access to a device, but anyone who obtains your recovery phrase may be able to restore the wallet elsewhere. Protecting the recovery phrase is therefore critical.
Can I buy crypto with UPI through Trust Wallet?
Trust Wallet has integrated third-party fiat providers through services such as Onramper, which can support local payment methods including UPI. Availability, provider, KYC requirements and fees can vary, so check the transaction details shown before paying.
Can I transfer money from Trust Wallet directly to my bank account?
Not directly from the core wallet. A common method is to transfer the crypto to an Indian exchange, sell it for INR and then withdraw the INR to your linked bank account.
Can the government track Trust Wallet transactions?
Public-blockchain transactions are visible on-chain. If a wallet address becomes linked with a KYC-verified exchange account or another identifiable service, blockchain analysis and transaction records may make it possible to associate activity with a particular user.
Is there a minimum deposit in Trust Wallet?
Trust Wallet itself does not operate like a bank or exchange account with a universal minimum deposit. However, third-party buy providers and exchanges may impose their own minimum purchase, deposit or withdrawal amounts. You also need enough of the relevant blockchain’s native token to pay network fees when required.
Is Trust Wallet safe after the 2025 hack?
The December 2025 security incident affected Trust Wallet browser extension version 2.68. Trust Wallet said mobile-only users and other browser-extension versions were not affected by that incident. Users should still protect their recovery phrase, verify transactions and use only official software.
Siri is a writer venturing into the exciting realms of blockchain technology, cryptocurrency, and decentralized finance (DeFi), eager to explore the transformative potential of these innovations. She brings a unique perspective that bridges traditional industries and cutting-edge technology, often infused with a touch of humor through memes. She has a rich background in real estate and interior design, having previously contributed to NoBroker, where she crafted blogs and assets on these topics.
