India Overtakes Singapore in Crypto Exchange Inflows
By Damilola Esebame
AI summary of the source article
India recorded $88.4 billion in centralized crypto exchange inflows from July 2025 to June 2026, leading Chainalysis's Central & Southeast Asia and Oceania region ahead of Singapore and Australia. Despite this inflow volume, India's broader crypto economy contracted by 14.7% to $135 billion. Domestic exchanges captured just 0.7% of local trading volume, driven offshore by a strict tax regime featuring a 30% flat tax and a 1% transaction deduction. Meanwhile, regulatory scrutiny has increased, with the Financial Intelligence Unit fining Binance before its re-entry and mandating stricter KYC requirements for operating exchanges.
Why it matters
Higher trading volumes are failing to spur growth in India's regulated domestic crypto industry because high taxes drive activity offshore. Consequently, Indian regulators face the challenge of drawing substantial market demand back into the local regulatory perimeter.
Key facts
- India recorded $88.4 billion in centralized exchange inflows between July 2025 and June 2026, surpassing Singapore's $82.3 billion.
- Domestic Indian exchanges captured only 0.7% of local exchange volume, compared to a regional average of about 7%.
- India maintains a 30% flat tax on virtual digital assets and a 1% tax deducted at source, with no deductions permitted beyond acquisition costs.