A LocalCircles survey found widespread cryptocurrency distrust after the massive Binance security breach. The findings also showed stronger support for a ban and greater willingness to use RBI's digital rupee.Binance suffered nearly $6 billion crypto theft.
The massive security breach at Binance, the world's largest cryptocurrency exchange, has once again brought the risks of investing in digital assets into focus. A new survey by LocalCircles has found that 82% of Indians have low or zero trust in cryptocurrencies, with 66% saying they have no trust in them at all.The findings come a day after Binance suffered what could be the biggest cryptocurrency theft on record, with attackers draining its hot wallets across multiple blockchains on October 29.
Blockchain analytics firm Chainalysis estimates that around $5.9 billion was stolen, while Binance has put the total impact at approximately $6.3 billion.In its survey report released on October 30, LocalCircles said 66% of respondents had zero trust in cryptocurrencies, while 16% reported low trust. Only 4% said they had high trust in digital currencies, while 6% expressed average confidence.
Another 8% were undecided.The survey received over 43,000 responses from citizens across 311 districts in India, although the question on trust in cryptocurrencies received 10,950 responses. "82% of respondents have little or no trust in cryptocurrencies but 4% are greatly attracted by them," LocalCircles said in its report.The survey also found that distrust in cryptocurrencies has increased over the past five years. The proportion of respondents with zero trust rose to 66% in 2026 from 49% in 2021.
Meanwhile, the share of those reporting low trust declined from 22% to 16%, while average trust fell from 12% to 6%. The combined share of respondents with low or zero trust increased from 71% in 2021 to 82% in 2026.59% WANT CRYPTOCURRENCIES BANNED COMPLETELYThe survey also highlighted growing support for a complete ban on cryptocurrencies in India.When asked how the country should handle cryptocurrencies from a regulatory standpoint, 59% of respondents said the government should ban them completely.Another 16% said cryptocurrencies should not be legalised but should be taxed like digital assets held in a foreign country.
Meanwhile, 19% supported legalising cryptocurrencies and taxing them in India. The remaining 6% were undecided.The question received 10,776 responses.The survey findings come amid repeated security incidents involving cryptocurrency exchanges.
Apart from the latest Binance breach, global exchange Bitget reportedly lost around $387.5 million from its hot and warm wallets in September 2026.Closer home, Indian cryptocurrency exchange CoinDCX confirmed in October that around $16 million had been drained from wallets it had retired. The incident followed a $44 million hack in July 2025.
The report also highlighted the July 2024 WazirX hack, in which around $230 million was stolen.LocalCircles noted that these incidents have raised concerns about the safety of investors' assets, particularly in the absence of a statutory investor protection mechanism for cryptocurrency holdings in India.76% INDIAN FAMILIES HAVE NO CRYPTO INVESTORSThe survey also attempted to assess the extent of cryptocurrency participation among Indian households.It found that 76% of respondents said nobody in their family was trading or investing in cryptocurrencies. Another 16% said one family member was involved, while 5% reported that multiple family members were investing in digital currencies.
The remaining 3% did not give a clear response.The question received 10,819 responses.56% OPEN TO USING RBI'S DIGITAL RUPEEInterestingly, the survey found greater willingness among respondents to use India's official digital currency, or Central Bank Digital Currency (CBDC), backed by the Reserve Bank of India (RBI).When asked whether they would use CBDC once banks made it available for business-to-consumer and consumer-to-consumer transactions, 56% said they were willing to do so.However, 21% said they would not use it, while 23% were undecided. The question received 10,906 responses.The digital rupee is a tokenised version of the Indian rupee issued and regulated by the RBI.LocalCircles said the findings point to increasing awareness among citizens about the risks associated with cryptocurrency investments.
The survey also highlighted a growing gap between public confidence in private cryptocurrencies and willingness to adopt a central bank-backed digital currency.The survey was conducted among registered and validated citizens on the LocalCircles platform. Of the overall respondents, 68% were men and 32% were women.
Around 45% were from tier 1 cities, 37% from tier 2 cities and 18% from tier 3, tier 4 and rural districts.- Ends