India has maintained its position as the global leader in cryptocurrency adoption for the second year running, according to a report from blockchain analytics firm Chainalysis. This achievement comes despite the country’s stringent regulations and high trading taxes, which have made it difficult for crypto investors to operate freely.
The report, which tracked adoption trends in 151 countries from June 2023 to July 2024, highlighted India’s strong engagement with both centralized and decentralized finance (DeFi) platforms. India’s wide participation in various crypto assets, despite restrictions, suggests that new investors are increasingly using services not directly banned by the government.
Since 2018, India has taken a hard line against cryptocurrencies, with the Financial Intelligence Unit (FIU) issuing show-cause notices to several offshore crypto exchanges, including nine in December 2023, for failing to comply with local regulations. However, recent developments, such as the lifting of certain restrictions on exchanges like Binance, are expected to further drive adoption.
Binance, the world’s largest crypto exchange, resumed its operations in India after registering with the FIU, although it was fined 188.2 million rupees ($2.25 million) in June 2024 for previous non-compliance. KuCoin, another exchange, faced a smaller fine of 3.45 million rupees after registering in March.
In addition to India, other Central and South Asian countries such as Indonesia, Vietnam, and the Philippines ranked highly in Chainalysis’ adoption index. Indonesia, which has banned the use of cryptocurrencies as a payment method but allows crypto investments, recorded $157.1 billion in digital asset inflows from July 2023 to July 2024, highlighting robust trading activity in the region.
The report also noted that decentralized transactions, particularly retail transfers under $10,000, were more prevalent in countries with lower purchasing power, further underscoring the global rise of crypto in emerging markets.
