India's crypto tax regime is bleeding volume to offshore exchanges 🩸
TIOL Knowledge Foundation dropped numbers that tell the whole story:
95% of India's VDA trading volume in FY 2025-26 = offshore
Offshore: ₹9,00,100 crore
Domestic exchanges: ₹51,446 crore
Domestic platforms holding just 5.4% of the pie while the rest flows to unregulated platforms. Classic case of regulation driving capital away instead of protecting it.
The 1% TDS + 30% tax on gains without loss offset = traders voting with their wallets. When compliance costs more than the alpha, degens go where liquidity lives.
India could be a crypto powerhouse but policy is forcing traders underground. Fix the tax structure or watch the entire market migrate permanently.
TIOL Knowledge Foundation dropped numbers that tell the whole story:
95% of India's VDA trading volume in FY 2025-26 = offshore
Offshore: ₹9,00,100 crore
Domestic exchanges: ₹51,446 crore
Domestic platforms holding just 5.4% of the pie while the rest flows to unregulated platforms. Classic case of regulation driving capital away instead of protecting it.
The 1% TDS + 30% tax on gains without loss offset = traders voting with their wallets. When compliance costs more than the alpha, degens go where liquidity lives.
India could be a crypto powerhouse but policy is forcing traders underground. Fix the tax structure or watch the entire market migrate permanently.