India leads in global Cryptocurrency adoption for second consecutive year
India has once again emerged as a global leader in cryptocurrency adoption, marking its second consecutive year at the forefront despite stringent regulatory measures and high trading taxes. According to a new report from blockchain analytics firm Chainalysis, India topped the rankings for cryptocurrency usage, including centralized exchange and decentralized finance assets, from June 2023 to July 2024.
The Chainalysis report, which evaluates adoption across 151 countries and four sub-categories, highlights India’s resilience in the face of tough regulations. Since 2018, India has maintained a stringent stance on cryptocurrencies. This included a notable move in December 2023 when the Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges for non-compliance with local regulations.
Eric Jardine, research lead at Chainalysis, commented on the findings, stating, “India has also achieved a broad level of adoption across various crypto assets despite restrictions. This indicates that new participants are finding ways to engage with cryptocurrencies through services that have not been banned.”
Recent developments have shown some easing of these restrictions. Binance, the world’s largest crypto exchange, faced a fine of 188.2 million rupees ($2.25 million) in June 2024 after registering with the FIU to resume operations in India. Meanwhile, KuCoin, another major exchange, registered with the FIU in March and received a smaller penalty of 3.45 million rupees.
Jardine also noted, “The partial rollback of restrictions, exemplified by Binance’s renewed presence, is likely to further boost cryptocurrency adoption in India.”
The report also highlighted that seven of the top 20 countries in the global adoption index are from Central and South Asia, including Indonesia, Vietnam, and the Philippines. Notably, Indonesia recorded $157.1 billion in digital asset trading inflows over the past year, despite banning cryptocurrencies as a means of payment while permitting investment in these assets.
The report underscores that decentralized transaction volumes, especially retail-sized transfers under $10,000, are notably high in countries with lower purchasing power per capita. This trend reflects a growing global interest in cryptocurrencies despite varying regulatory environments and economic conditions.
