India Crypto Exchanges: Trends and Insights

Introduction to India Crypto Exchanges

Chainalysis's new regional report reveals that India's domestic crypto exchanges receive only 0.7% of exchange value. This is in contrast to Brazil-based exchanges, which receive 12.5% of inflows. The report highlights the difference between national participation in the crypto market and the share of domestic platforms.

The findings are based on Chainalysis's CSAO chapter, which was published on September 30, and its Latin America chapter, published on September 23. The report covers the period from July 2025 to June 2026.

Crypto Exchange Inflows in India

According to Chainalysis, India-based users accounted for $88.4 billion in centralized-exchange inflows during the reporting period. However, domestic platforms received only 0.7% of this value, down from around 7% in previous years.

The report attributes this decline to various factors, including the 1% withholding tax on crypto transactions in India. This tax can reduce the cash available for traders to invest in other cryptocurrencies.

Withholding Tax in India

India's current tax law requires a 1% withholding tax on consideration for virtual digital asset transfers paid to a resident. This tax is deducted at the time of payment or credit, and it can reduce the proceeds available for traders to invest in other cryptocurrencies.

For example, if a trader sells a cryptocurrency for ₹100,000, the buyer will deduct 1% of the consideration, which is ₹1,000, as tax. The seller will receive only ₹99,000, which can be used to invest in other cryptocurrencies.

Brazil's Crypto Market

In contrast to India, Brazil's crypto market has seen a significant increase in domestic exchange inflows. Brazil-based exchanges now receive 12.5% of inflows, up from 1.5% in previous years.

Chainalysis attributes this growth to various factors, including regulatory clarity, investment, and stronger local offerings. The report also notes that corporate stablecoin use for liquidity and cross-border transfers has increased in Brazil.

Payment Access in India and Brazil

Payment access is another factor that can influence the choice of crypto exchange. In India, traders can use local payment methods such as UPI and net banking to deposit funds into their crypto accounts.

In Brazil, traders can use Pix, a popular payment method, to buy cryptocurrencies. International exchanges such as Binance also offer local payment methods, making it easier for traders to access crypto markets.

Conclusion and Future Outlook

In conclusion, the report highlights the differences between India's and Brazil's crypto markets. While India's domestic crypto exchanges receive only 0.7% of exchange value, Brazil's domestic exchanges receive 12.5% of inflows.

The report attributes these differences to various factors, including tax laws, regulatory clarity, and payment access. As the crypto market continues to evolve, it will be interesting to see how these factors influence the growth of domestic crypto exchanges in India and Brazil.

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• India's domestic crypto exchanges receive only 0.7% of exchange value.
• Brazil-based exchanges receive 12.5% of inflows.
• The 1% withholding tax on crypto transactions in India can reduce the cash available for traders to invest in other cryptocurrencies.
• Regulatory clarity, investment, and stronger local offerings have contributed to the growth of Brazil's domestic crypto market.

Chainalysis's report provides valuable insights into the crypto markets in India and Brazil. As the crypto industry continues to grow, it is essential to understand the factors that influence the choice of crypto exchange and the growth of domestic crypto markets.

Expert Perspective and Implications

CoinSwitch co-founder Ashish Singhal told Chainalysis that tax friction helps explain offshore use, adding that foreign venues may not make the deduction. This highlights the need for regulatory clarity and competitive tax policies to support the growth of domestic crypto exchanges.

The implications of these findings are significant for traders, investors, and policymakers in India and Brazil. As the crypto market continues to evolve, it is essential to monitor the impact of tax laws, regulatory clarity, and payment access on the growth of domestic crypto exchanges.

Timeline of Key Events

The following timeline highlights the key events and milestones in the development of India's and Brazil's crypto markets:

• July 2025: Chainalysis begins tracking crypto exchange inflows in India and Brazil.
• September 23, 2026: Chainalysis publishes its Latin America chapter, highlighting the growth of Brazil's domestic crypto market.
• September 30, 2026: Chainalysis publishes its CSAO chapter, revealing the decline of India's domestic crypto exchanges.

As the crypto market continues to grow and evolve, it is essential to stay informed about the latest trends, regulatory updates, and market insights.

Background and Context

The crypto market in India and Brazil has been growing rapidly in recent years, with an increasing number of users and transactions. However, the regulatory environment and tax laws in these countries have been evolving, and it is essential to understand the impact of these changes on the growth of domestic crypto exchanges.

Implications for Readers in India

The findings of the report have significant implications for readers in India, particularly those who are interested in investing in cryptocurrencies. The 1% withholding tax on crypto transactions in India can reduce the cash available for traders to invest in other cryptocurrencies, and it is essential to understand how this tax works and how it can impact investment decisions.

What to Watch Next

As the crypto market continues to evolve, it is essential to watch for regulatory updates, changes in tax laws, and developments in payment access. These factors can influence the growth of domestic crypto exchanges in India and Brazil, and it is essential to stay informed about the latest trends and market insights.