India's Spot Crypto Trading Volume Drops 85% as Futures Account for 80% of Exchange Volume

According to Moneycontrol, spot crypto trading volume on Indian exchanges has dropped by as much as 85% since 2022, with futures and derivatives now accounting for more than 80% of total trading activity. The shift has been driven primarily by the 1% Tax Deducted at Source (TDS) on every spot cryptocurrency transaction, a levy that makes frequent buying and selling prohibitively expensive for active traders. Futures contracts, which do not trigger the 1% TDS, have become the tax-advantaged alternative.

The migration carries measurable risk. Industry estimates indicate that 70% to 80% of Indian retail crypto futures traders are currently losing money, with some domestic exchanges offering leverage of up to 100x. An estimated 75% of Indian crypto trading has shifted to offshore platforms such as Binance and Bybit, where traders seek to avoid the 1% TDS and the flat 30% income tax on crypto gains.