India Leads CSAO in Centralized Crypto Exchange Inflows Despite 14.7% Market Decline

India ranked third overall but first on CEX inflows

Chainalysis said India recorded $135 billion in total crypto activity during the July 2025 to June 2026 reporting window, making it the third largest crypto economy in CSAO. Singapore remained the region’s largest overall market at $284 billion, while Australia ranked second at $173.1 billion.

When only centralized exchange inflows are isolated, however, India moved ahead of both countries. Its $88.4 billion in CEX inflows slightly exceeded Singapore’s $82.3 billion, with Australia next at $79.3 billion.

Investment use remains central to Indian crypto activity

Chainalysis said investment continues to be a major use case for crypto in India. CoinSwitch co-founder Ashish Singhal told the firm that the market is still driven mainly by buying, holding and selling digital assets rather than other forms of usage.

Singhal said the investor base is widening beyond the younger demographic often associated with crypto. He said users aged 35 and older are increasingly entering the market, including some with larger portfolios. Mudrex CEO Edul Patel described a similar shift, saying some users are moving from a short-term trading mindset toward accumulation and viewing crypto alongside assets such as equities, gold and mutual funds.

Domestic exchanges retain only a small share of local volume

Despite India’s large centralized exchange inflows, domestic platforms account for only a small fraction of local exchange activity. Chainalysis said Indian exchanges handled around 7% of local exchange volume before their share fell in mid-2022, and that figure has remained low since then.

In the latest data, domestic exchanges processed just 0.7% of Indian exchange volume. Across the rest of CSAO, domestic platforms handle an average of about 7% of their respective local volumes. Singhal pointed to India’s tax structure as one reason activity shifted away from local venues, saying compliant domestic exchanges apply the country’s 1% tax on crypto transactions while offshore platforms may not.

Oversight of offshore trading and private deals is expanding

Indian authorities have continued to tighten scrutiny of the market while the Reserve Bank of India maintains a cautious stance on crypto. Cryptocurrency gains in India are taxed at 30%, and qualifying virtual digital asset transactions are subject to a 1% tax deducted at source.

Regulators have also increased pressure on offshore platforms serving Indian users. In September, the Financial Intelligence Unit issued non-compliance notices to 15 offshore crypto platforms and sought action to remove their apps and URLs in India, including Weex, Blofin, WOO X and WhiteBIT. Providers serving Indian customers are required to register with FIU-IND as reporting entities and comply with anti-money laundering obligations even without a physical presence in the country.

The compliance push has extended beyond standard exchange activity. In June, FIU-IND sought records of crypto over-the-counter trades worth more than $10,000 from at least three major exchanges, requesting records back to January 2026 and seeking details on beneficial ownership, intermediaries and entities involved in private transactions.

Reporting rules are broadening as policy remains fragmented

India has also widened parts of its international tax reporting framework. In August, the rules were expanded to cover specified crypto assets, central bank digital currencies and certain digital money products, with revised due diligence requirements for banks, custodians, insurers, mutual funds and other covered institutions.

Accounts with balances above $1 million are subject to enhanced checks before reporting classification. The changes followed concerns within the Income Tax Department about tracing activity routed through overseas exchanges and private wallets. Earlier reporting cited internal government documents showing that fewer than one quarter of the 645,000 people who conducted cryptocurrency transactions in the financial year ending March 2023 disclosed them in income tax returns.

India still does not have a comprehensive digital asset law, leaving oversight spread across taxation, anti-money laundering rules and reporting requirements. Within that framework, the next confirmed marker is Chainalysis’ latest count: $88.4 billion in centralized exchange inflows from Indian users over the past reporting year, the highest in CSAO.