- India has claimed the top spot in global crypto adoption, surpassing Nigeria, Vietnam and the US.
- DeFi is surging in CSAO, comprising 55.8% of regional transaction volume from July 2022 to June 2023.
Blockchain analysis platform Chainalysis unveiled its Global Crypto Adoption Index for 2023, revealing that India has surged to the top spot in terms of cryptocurrency adoption despite grappling with a challenging regulatory and tax environment. This marks a two-spot rise from its position in the previous year’s rankings.
The report sheds light on the fact that emerging markets are taking the lead in global cryptocurrency adoption, with 20 countries. Central & Southern Asia and Oceania (CSAO) have emerged as a dynamic and fascinating cryptocurrency market, ranking third in raw transaction volume, closely following North America and Central, Northern & Western Europe (CNWE), contributing to nearly 20% of worldwide crypto activity.
On the Global Crypto Adoption Index, India surpasses countries like the US, UK, and Russia, underscoring the robustness of India’s crypto community and its commitment to driving further adoption of blockchain technology.
India’s Lead in Global Crypto Adoption
India has taken the lead in terms of transaction volume, receiving an estimated $268.9 billion in crypto assets. This impressive figure underscores India’s growing interest and involvement in the world of cryptocurrencies.
Also, the report highlights the increasing role of decentralized finance (DeFi) in CSAO, accounting for approximately 55.8% of regional transaction volume between July 2022 and June 2023, a significant increase from the previous year. Furthermore, institutional adoption in the region appears to be on the rise, with 68.8% of total transaction volume involving transfers valued at $1 million or more, compared to 57.6% in the preceding period.
Moreover, India’s position at the forefront of cryptocurrency adoption is particularly impressive considering the challenging regulatory and tax landscape. Despite recent clarifications by regulatory agencies, India taxes cryptocurrency activities at a relatively high rate, with a 30% tax on gains, unique to crypto, and a 1% tax on all transactions, referred to as a tax deducted at source (TDS). This means that crypto platforms must deduct the TDS amount from users’ balances at the time of the trade.
However, in the realm of cryptocurrency web traffic, centralized exchanges reign supreme across these nations. The Philippines leads the pack with a significant 19.9% of crypto-related web traffic funneled into gaming and gambling platforms, closely trailed by Vietnam at 10.8%. Meanwhile, Pakistan and Vietnam showcase a higher preference for peer-to-peer (P2P) exchanges, frequently favored in emerging markets and regions with stringent capital controls.
In conclusion, the report also points out that global cryptocurrency adoption reached its peak in Q1 of 2023 and has since fluctuated in waves. Nevertheless, it remains significantly higher than during the 2022 turbulence market.
