India Surpasses Singapore in Centralized Crypto Exchange Inflows

India has taken the lead in centralized crypto exchange inflows, surpassing Singapore and Australia, according to a Chainalysis regional analysis. Between July 2025 and June 2026, India received $88.4 billion in inflows, outpacing Singapore's $82.3 billion and Australia's $79.3 billion. This dominance comes despite a regulatory environment that imposes some of the heaviest tax burdens on crypto trading in any major economy.

India's Financial Intelligence Unit (FIU-IND) fined Binance $2.25 million for anti-money laundering violations before the exchange registered with the FIU and re-entered India in August 2024. Exchanges operating in India now face enhanced Know Your Customer requirements, including live selfie verification, geolocation capture, and bank account cross-checks, raising the compliance cost of serving Indian retail traders.

CoinSwitch co-founder Ashish Singhal said that crypto in India is 'predominantly being used as an investable asset' through buying, holding, and selling rather than for payments or decentralized finance applications. The Reserve Bank of India maintains a cautious stance on digital assets, and the 2026 budget reduced criminal liability for TDS defaults from seven years to a maximum of two years.

India's challenge is therefore no longer simply whether crypto activity will persist under its tax regime, but how much of that activity can be brought within its domestic regulatory perimeter. Mudrex Chief Executive Officer Edul Patel noted that the Indian investor mindset has shifted from short-term speculation to accumulation, with crypto now held alongside equities, gold, and mutual funds.