29th June, 2026
By Shubhii Verma
India Leads Asia with $340 Billion in Crypto Inflows
India recorded nearly $340 billion in cryptocurrency inflows between June 2024 and June 2025, making it the largest crypto market in Asia by transaction value during the period, according to the OECD’s Asia Capital Markets Report 2026. The figure represents nearly 9% of India’s GDP, highlighting the growing role of digital assets despite the country’s evolving regulatory landscape.
The report, which cites data from blockchain analytics firm Chainalysis, shows that India received the highest crypto inflows among major Asian economies, followed by South Korea. Vietnam and Indonesia also recorded significant activity. When measured as a percentage of GDP, however, Vietnam led the region with crypto inflows equivalent to nearly 50% of its economy, followed by Cambodia and Pakistan.
Understanding Crypto Activity and Domestic Impact
Experts caution that the reported inflows should not be interpreted as foreign capital entering India. Instead, the figures represent the total value of cryptocurrency transactions associated with blockchain addresses linked to Indian users. These transactions may include domestic trading, wallet transfers, decentralized finance (DeFi) activity, and payments rather than cross-border investment flows.
India continues to maintain one of the world’s strictest tax regimes for virtual digital assets. Crypto gains are currently subject to a 30% tax, along with applicable surcharge and cess, while most crypto transactions also attract a 1% Tax Deducted at Source (TDS). Despite these tax measures, trading activity has remained strong, reflecting sustained interest among retail and institutional participants.
Stablecoins and Regulatory Developments Drive Market Growth
The OECD report also highlighted the rapid growth of stablecoins within the broader digital asset market. By March 2026, the combined market capitalization of the world’s five largest stablecoins had reached nearly $300 billion, accounting for around 10% of the total cryptocurrency market. Stablecoin valuations increased by approximately 48% during 2025, underscoring their expanding role in digital finance and cross-border payments.
The findings come as the Indian government continues discussions on a comprehensive regulatory framework for cryptocurrencies. Policymakers are consulting industry participants and financial regulators to address issues including investor protection, taxation, custody, decentralized finance, cybercrime, and financial stability.
Industry experts argue that the scale of crypto activity now warrants a dedicated legal framework. With digital asset transactions approaching a value equivalent to nearly one-tenth of India’s GDP, stakeholders believe clear regulations will be essential to support innovation while strengthening consumer safeguards and ensuring greater market transparency.
