India has maintained its position as a global leader in grassroots crypto adoption, according to Chainalysis’ 2024 Global Crypto Adoption Index. The index evaluates 154 countries based on various metrics, including crypto transactions on exchanges, DeFi platforms, and peer-to-peer trading. India has consistently topped the list since the 2023 report, with other countries like Nigeria, Indonesia, the US, Vietnam, Ukraine, and Russia also ranking in the top 10. This highlights the strong engagement with crypto in the Central and Southern Asia and Oceania (CSAO) region.
Despite shifting tax policies and regulatory challenges, India’s crypto resilience shines through. The country has faced challenges such as a 30% crypto capital gains tax and a 1% tax deducted at source on transactions, as well as a ban on foreign crypto platforms. However, these developments have not hindered overall growth in the country. India’s ability to maintain its position as a crypto leader is commendable, especially in the face of regulatory uncertainty.
In December 2023, India’s Financial Intelligence Unit (FIU) issued notices to nine offshore crypto exchanges for non-compliance with anti-money laundering regulations. Platforms like Binance, HTX (formerly Huobi), and Kraken were instructed to block their URLs for Indian users. Despite these measures, users have found ways to bypass restrictions and access these exchanges through previously downloaded apps. The impact of these URL blockings on the crypto market was minimal and short-lived, indicating the resilience of the Indian crypto community.
Vikram Rangala, Executive Director at ZebPay, believes that these regulatory measures may not be permanent and hopes for clearer regulations to support India’s growing crypto and Web3 community. The FIU is currently reviewing registration applications from four foreign crypto exchanges, with two expected to gain approval to operate in India by the end of the 2025 financial year. This suggests a potential shift towards more accommodating regulations that could benefit the crypto industry in India.
Chainalysis’ Global Crypto Adoption Index serves as a valuable tool for assessing the global landscape of crypto adoption. By evaluating countries based on various metrics, the index provides insights into where individuals are investing the most in crypto. India’s consistent top ranking reflects the country’s strong engagement with digital currencies, despite regulatory uncertainties. As the crypto market continues to evolve, India’s position as a leader in grassroots adoption sets an example for other countries looking to embrace digital assets.
India’s resilience in the face of changing tax policies and regulatory challenges is commendable, as highlighted by Chainalysis. The country’s ability to maintain its position as a crypto leader despite regulatory uncertainties demonstrates the strength of its crypto community. With ongoing review processes for foreign crypto exchanges, India may be poised to adopt more accommodating regulations that could further bolster its crypto ecosystem. Overall, India’s continued presence at the forefront of crypto adoption emphasizes the country’s significance in the global digital asset landscape.
