Binance Hack Fallout: 82% of Surveyed Indians Report Low or Zero Trust in Cryptocurrencies

A recent survey by LocalCircles indicates that 82% of surveyed Indians have low or zero trust in cryptocurrencies following a massive security breach at the global exchange Binance. The findings highlight growing skepticism toward digital assets and increased public backing for regulatory restrictions.

Survey Findings on Trust and Regulation

• Trust Levels: Released on October 30, the LocalCircles report stated that 66% of respondents had zero trust in cryptocurrencies, 16% reported low trust, 6% expressed average confidence, and 4% reported high trust, while 8% remained undecided.
• Ban Support: About 59% of respondents favored a complete government ban on cryptocurrencies, while 19% supported legalisation with domestic taxation, and 16% preferred keeping them illegal but taxing them like foreign assets.
• Household Participation: The survey found that 76% of respondents reported no family members trading or investing in cryptocurrencies, whereas 16% had one member involved and 5% had multiple.

Context of Security Incidents

The survey findings follow an October 29 security breach at Binance. Blockchain analytics firm Chainalysis estimated that approximately $5.9 billion was stolen, while Binance estimated the total impact at around $6.3 billion. The report also noted prior security incidents across the industry, including a September 2026 incident reported by Bitget, along with past breaches involving Indian exchanges such as CoinDCX and WazirX.

Interest in RBI's Digital Rupee

Despite widespread distrust in private cryptocurrencies, the survey indicated openness toward official alternatives:

• CBDC Adoption: Approximately 56% of respondents expressed willingness to use the Reserve Bank of India's (RBI) digital rupee once banks make it available for consumer transactions, while 21% declined and 23% were undecided.

Practical Implications and Verification

The survey reflects public sentiment gathered from registered citizens across 311 Indian districts. Observers and investors can review the original LocalCircles report methodology and announcements from regulatory bodies like the RBI to verify these findings and understand the evolving regulatory landscape for digital assets.