CryptoSlate
Chainalysis attributes $88.4 billion in centralized-exchange inflows to India-based users from July 2025 through June 2026, making India the largest such market in Central and Southeast Asia and Oceania. Yet Indian platforms received just 0.7% of exchange value in the report's analysis, down from around 7% after a sharp decline in mid-2022. Brazil-based exchanges, by contrast, received 12.5% of inflows, up from 1.5%.
Why it matters
The comparison separates crypto activity associated with a country from the share captured by platforms based there. Activity attributed to Indian users can flow to exchanges abroad, leaving domestic businesses with a small reported slice despite the market's scale. The figures measure received value, not executed trades, revenue or customer numbers, and the report does not specify whether its platform sample remained unchanged.
India's 1% withholding on consideration for eligible virtual digital asset transfers can reduce proceeds immediately available for another trade. CoinSwitch co-founder Ashish Singhal told Chainalysis that tax friction helps explain offshore use. That is an industry operator's explanation, not a measured cause of the reported decline; foreign platforms are not automatically exempt from Indian obligations.
Market impact
The share observations' precise dates are unspecified in the report chapters, and the publications describe activity ending before October. Chainalysis also says its geographic estimates use website traffic to allocate pooled service activity, adjusted for income differences, and acknowledges that removing VPN and bot traffic is imperfect.
The data point to a gap between India's large attributed market and domestic platforms' reported foothold, but they do not establish a synchronized market-share comparison or quantify withholding's contribution. For exchanges and investors, the distinction between national participation and local venue capture is central to assessing adoption and competitive position.
Frequently asked questions
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How much exchange value did Indian platforms receive in the Chainalysis report?
Indian platforms received 0.7% of exchange value in the report's analysis, down from around 7% after a sharp decline in mid-2022.
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How do India's reported exchange inflows compare with Brazil's?
Chainalysis attributes $88.4 billion in centralized-exchange inflows to India-based users. Brazil-based exchanges received 12.5% of inflows, up from 1.5%.
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Does the 0.7% figure measure Indian exchanges' trading volume or revenue?
No. The reported shares describe received exchange value, not executed trades, revenue or customer numbers.
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What role might India's crypto withholding tax play in exchange choice?
The 1% withholding on eligible transfers can reduce proceeds immediately available for another trade. An industry executive cited tax friction as a reason for offshore use, but its contribution to the reported decline is unmeasured.
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How does Chainalysis attribute exchange activity to a country?
Its general methodology allocates pooled service activity using website traffic, adjusted for income differences. Chainalysis says removing VPN and bot traffic is imperfect.
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