Sentinel Digital Desk
India has topped the global charts in cryptocurrency adoption for the second consecutive year. Despite tough regulations and high trading taxes, investors continue to embrace cryptocurrencies, according to a new report from Chainalysis.
The Chainalysis report, covering June 2023 to July 2024, shows India excelled in using both centralized exchanges and decentralized finance (DeFi) assets. This high ranking highlights India’s significant role in the global crypto space.
Since 2018, India has enforced strict regulations on cryptocurrencies. In December 2023, the Financial Intelligence Unit (FIU) issued notices to nine offshore crypto exchanges for not following local rules. Despite these challenges, India's adoption rate remains strong.
Recent regulatory changes are positively affecting crypto adoption. For instance, Binance, the world’s largest crypto exchange, was fined 188.2 million rupees ($2.25 million) in June. The exchange registered with the FIU, aiming to resume operations in India, potentially boosting adoption further.
Central and South Asian countries, including Indonesia, Vietnam, and the Philippines, also feature prominently in the global adoption index. These regions show high engagement in crypto despite varying regulatory environments.
Countries with lower purchasing power, like Indonesia, see significant decentralized transaction volumes. Despite banning cryptocurrencies as payment, Indonesia allows investment in digital assets and saw $157.1 billion in crypto trading in the past year.