India's Crypto Activity Falls 14.7% to $135 Billion: Report
Chainalysis says India's crypto economy shrank 14.7% in the year to June 2026, yet Indians still sent the most money into exchanges in the region.
India's crypto economy shrank by 14.7% to $135 billion (about ₹12.9 lakh crore) in the twelve months from July 2025 to June 2026, according to the Central and Southeast Asia and Oceania section of the blockchain data firm Chainalysis's 2026 Geography of Crypto report, published on 30 September 2026. That is one of the sharpest drops in the region. But India was still the region's biggest market for money flowing into centralised exchanges, and the report says most of that money now goes to platforms based outside India.
Key takeaways
- India ranked third in the region by total crypto activity at $135 billion, behind Singapore ($284 billion, up 55.4%) and Australia ($173.1 billion, down 5.6%). Vietnam was fourth at $122.2 billion.
- Indian users received $88.4 billion in centralised exchange inflows, the most in the region, just ahead of Singapore at $82.3 billion.
- Domestic Indian platforms' share of exchange volume has fallen from about 7% to about 0.7% since mid-2022. Elsewhere in the region, local platforms handle about 7%.
- An Indian exchange founder quoted in the report blamed the friction of the 1% TDS, which compliant local exchanges deduct but offshore ones may not.
- The whole region's crypto economy contracted 6.8%; globally activity slipped only 1.6%.
What the numbers show
Chainalysis estimates each country's "crypto economy" from the value of crypto its users receive across exchanges, DeFi apps, peer-to-peer transfers and institutional platforms. The period covers a global bear market in which, by Chainalysis's count, about $2.1 trillion was wiped off crypto's total market value, so lower activity was expected almost everywhere.
| Country | Crypto activity, Jul 2025 to Jun 2026 | Change | Exchange (CEX) inflows |
|---|---|---|---|
| Singapore | $284 billion | +55.4% | $82.3 billion |
| Australia | $173.1 billion | -5.6% | $79.3 billion |
| India | $135 billion | -14.7% | $88.4 billion |
| Vietnam | $122.2 billion | not stated | $69.8 billion |
Singapore's jump came mostly from big trading firms: activity on institutional platforms there rose 94% to $60 billion. India's activity, by contrast, is still dominated by individual investors buying and selling on exchanges. The report sums it up in one line: "In India, crypto as a speculative asset remained strong."
The offshore problem
The most striking India finding is where people trade. Before mid-2022, domestic Indian platforms handled roughly 7% of the exchange volume Indian users received. Since then the share has dropped to about 0.7%, while local platforms in other countries in the region hold on to around 7%.
Mid-2022 is when India's 1% tax deducted at source (TDS) on crypto sales took effect, in July of that year, a few months after the flat 30% tax on gains. Ashish Singhal, co-founder of the Indian exchange CoinSwitch, told Chainalysis that the "friction" of local tax rules is one reason money left: compliant Indian exchanges deduct the 1% on every sale, but offshore exchanges may not. Frequent traders feel that most, because the TDS is taken on each trade, not on profit.
Trading offshore carries its own risks. In September the Financial Intelligence Unit (FIU-IND) acted against 15 more offshore platforms operating in India without registering (our report). And the tax still applies: Indian residents owe the 30% tax on gains wherever they trade. Our guide to checking crypto TDS in Form 26AS and AIS shows how to see what was deducted in your name.
A more patient investor base
Executives quoted in the report say Indian users are changing how they invest. Singhal said crypto in India is "predominantly being used as an investable asset", with more investors aged over 35, some with larger portfolios, joining a crowd that used to be mostly young. Edul Patel, chief executive of the exchange Mudrex, said the mindset is shifting "from 'flip' to 'accumulate'", with crypto held alongside shares, gold and mutual funds.
That fits Chainalysis's global index released earlier in September, which ranked India sixth for crypto adoption after years at or near the top (our report on the 2026 adoption index).
What it means for you
- Use an FIU-registered exchange. Registered platforms follow Indian anti-money-laundering rules and deduct TDS, which you can claim back against your tax. See the list of FIU-registered crypto exchanges in India.
- Do not trade offshore to dodge TDS. The tax is still owed, and apps blocked in India can become hard to reach, which makes withdrawals difficult.
- Trade less, hold longer. If TDS on every trade is eating your returns, fewer, larger trades or a monthly SIP keep it down. Our TDS refund guide explains how to get deducted tax back.
FAQ
How big is India's crypto market in 2026?
About $135 billion of crypto activity between July 2025 and June 2026, down 14.7% from the year before, according to Chainalysis.
Which country leads crypto activity in South and Southeast Asia?
Singapore, with $284 billion in the same period, up 55.4%. Australia was second and India third.
Why are Indians using offshore exchanges?
The report points to the 1% TDS on every crypto sale, which Indian exchanges deduct but offshore ones may not. Domestic platforms' share of volume fell from about 7% to 0.7% after the rule began in 2022.
Is it legal to use offshore crypto exchanges in India?
Platforms serving Indians must register with FIU-IND, and FIU-IND has acted against many that did not. Using a registered exchange is the safer choice, and tax on gains applies wherever you trade.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
