India has led global cryptocurrency adoption for the second year in a row, according to a Reuters report published on September 11. Despite strict regulations and high trading taxes, India remains at the forefront of crypto usage, as highlighted by blockchain analytics company Chainalysis.
The Chainalysis report, which tracks cryptocurrency adoption across 151 countries, shows India excelling in both centralised exchanges and decentralised finance from June 2023 to July 2024.
Since 2018, India has maintained a stringent stance on cryptocurrencies. In December 2023, the Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore crypto exchanges for non-compliance with local regulations.
Eric Jardine, research lead at Chainalysis, noted that despite these restrictions, India has seen broad adoption of various crypto assets. “New participants are engaging with services not yet banned, and recent easing of some restrictions, like those affecting Binance, may further boost adoption,” Jardine said.
Binance, the world’s largest crypto exchange, was fined 188.2 million rupees ($2.25 million) in June after registering with the FIU to resume operations in India. Similarly, KuCoin registered with the FIU in March and faced a smaller fine of 3.45 million rupees.
The Chainalysis report also noted that seven of the top 20 countries in the global adoption index are in Central and South Asia, including Indonesia, Vietnam, and the Philippines.
In Indonesia, despite a ban on using cryptocurrencies for payments, investment in digital assets remains strong, with $157.1 billion in trading inflows recorded in the past year.
Overall, the report highlights significant decentralised transaction volumes in countries with lower purchasing power, reflecting robust crypto engagement in various regions.
