India's Local Crypto Exchanges Receive Only 0.7% of Country's Inflows, Chainalysis Finds

WHY IT MATTERS

Think of this like a situation where a country puts a heavy tax on buying goods at local stores, so most shoppers go to online stores based in other countries instead. In India's case, the government charges high taxes on cryptocurrency transactions, including a 1% fee taken automatically on every trade (called TDS, or Tax Deducted at Source). Because of this, most Indian crypto users appear to be using exchanges based outside India, where these taxes are not automatically applied. This means local Indian crypto businesses are losing almost all their potential customers, and the government may be collecting less tax revenue than intended. For anyone learning about crypto, this is a real-world example of how government policies can shape where and how people trade digital assets.