India's Local Crypto Exchanges Lag Behind in Inflow Value

India's local crypto exchanges have seen a significant decline in the value of inflows, with Chainalysis reporting that they received only 0.7% of the total exchange value in the latest regional report.

The report highlights the contrast between the amount of activity associated with a country and the amount of activity captured by its domestic platforms. In India's case, the country's users sent a substantial value to centralized exchanges, but domestic platforms received a relatively small share of the inflows.

Chainalysis attributes $88.4 billion in centralized-exchange inflows to India-based users during the annual period from July 2025 to June 2026, making India the largest such market in Central and Southeast Asia and Oceania. However, the domestic platforms' share of exchange value received fell from around 7% to 0.7%, with a sharp decline in mid-2022.

One possible explanation for this decline is the tax friction faced by domestic platforms, as CoinSwitch co-founder Ashish Singhal told Chainalysis that tax friction helps explain offshore use, adding that foreign venues may not make the deduction. This is a competitive pressure that compliant exchanges face, and it leaves the contribution to the measured outcome open.

In contrast, Brazil's domestic platforms have seen a significant increase in their share of exchange value received, from 1.5% to 12.5%. Chainalysis attributes this growth to regulatory clarity, investment, and stronger local offerings, as well as the use of corporate stablecoins for liquidity and cross-border transfers.