Indian Crypto Trading Shifted Offshore in FY25 Amid Tax Pressures

• Over 72% of Indian crypto trading shifted to offshore exchanges in FY25 due to tax rules.
• Traders logged ₹6,394 crore in profits but suffered ₹4,781 crore in losses in FY25.
• TDS came from a few users, distorting signals, while offshore trades avoided deduction.

India’s cryptocurrency market shifted further offshore in FY25 as domestic tax rules reshaped trader behavior. A new analysis by crypto tax platform KoinX shows that more than 72% of Indian crypto trading volume moved to overseas exchanges during the fiscal year. 

The data highlights how transaction-level taxation, rather than profitability, influenced where traders executed trades. Consequently, offshore platforms captured most activity despite tighter regulatory scrutiny and recent compliance efforts.

Offshore Platforms Capture Majority of Volume

KoinX reported that Indian traders generated nea…

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