India Maintains Top Position in Global Crypto Adoption

India remains a global leader in grassroots cryptocurrency adoption, according to the 2024 Global Crypto Adoption Index released by Chainalysis.

The report evaluated 154 countries using various metrics to determine where individuals are investing the most in cryptocurrencies, including crypto transactions on centralized exchanges, decentralized finance (DeFi) platforms, and peer-to-peer trading. India retained its top position in this index, a rank it also held in the previous year’s report.

The 2024 index also features Nigeria, Indonesia, the United States, Vietnam, Ukraine, and Russia in the top ten, indicating a strong interest in cryptocurrencies across the Central and Southern Asia and Oceania (CSAO) region.

“India’s resilience in maintaining its top position in crypto adoption, despite shifting tax policies and regulatory challenges, is evident,” said Chainanalysis. The data also points out that despite these hurdles, India’s crypto market continues to show strong engagement.

India’s crypto environment has faced several regulatory changes, including imposing a 30% capital gains tax on crypto transactions and a 1% tax deducted at source (TDS). The same report suggests that these taxes may be pushing investors toward international exchanges where such stringent rules do not apply. However, the firm stated, “These developments didn’t seem to hinder crypto’s overall growth in the country, and it is the same this year.”

In December 2023, the Financial Intelligence Unit (FIU) of India took action against nine offshore cryptocurrency exchanges, including Binance, HTX (formerly Huobi), and Kraken, citing non-compliance with anti-money laundering regulations. The Ministry of Electronics and Information Technology was then instructed to block the URLs of these platforms for Indian users. Despite this, Chainalysis observed, “Users could still access these exchanges via previously downloaded apps, with some apps still available for new downloads.”

An analysis by the Esya Center showed that the impact of these URL blockings on the Indian crypto market was minor and short-lived. “These regulatory measures may not last,” said Vikram Rangala, Executive Director at ZebPay. Rangala expressed a desire for more consistent and clear regulations to support India’s growing crypto and Web3 community.

The FIU is currently reviewing registration applications from four foreign crypto exchanges. Two of these exchanges are expected to gain approval to operate in India by the end of the 2025 financial year.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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