India’s top 10 cryptocurrency exchanges worth US$6.25 billion per year

Andrew Munro 23 January 2018

shutterstock india market 738x410

A thriving marketplace.

Indian tax officials say that the total income of the 10 biggest cryptocurrency exchanges is around Rs 40,000 crore, about US$6.25 billion.

"These exchanges tend to show the total volumes both on buy and sell side as their revenue. In many instances, the exchanges themselves buy and sell cryptocurrencies on their own platform," a tax official told the The Economic Times of India.

According to investigators, many of India's exchanges operate at a margin close to 20%, including fees and buy/sell spreads.

These enormous profit margins might not be tax-free for much longer. According to The Economic Times, unnamed insiders have said action has already been taken against top exchanges, including Zebpay, Unocoin, CoinSecure and BtcxIndia.

These actions are reportedly being spearheaded by the country's big banks, including Axis Bank, BSE, HDFC, ICICI and Yes Bank, who have started closing and suspending accounts, citing security concerns and know-your-customer (KYC) laws.



When asked for comment, The Economic Times received an outright denial of any crackdown from Sathvik Vishwanath, promoter of Unocoin, saying it had simply not been contacted by the banks at all. The other exchanges did not reply.

Uncertainty and doubt, if not fear

Reportedly, the freezing has been mostly directed at exchange owners and promoters, many of whom took out bank loans to build up the exchanges. While the trading volume at exchanges has been relatively unaffected, some of the exchanges are suddenly looking at cash flow problems, undermining the security of the entire system.

Banks are still playing an essential role in India's multi-billion-dollar cryptocurrency industry, as the bridge between fiat and cryptocurrencies, much like they are in other countries.

It remains to be seen what kind of effect this will have on India's growing crypto market. Rumours of crackdowns in other prominent crypto-countries have frequently been more than enough to punish the global market, and with these kinds of volumes, it's possible that the weakening of the supports in India could be dragging down global prices.

"We would not like to invest till the taxation part is clarified," an exchange promoter told the Times.


This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question