India has led the world in crypto adoption for the second year in a row, according to a report released on Wednesday by blockchain analytics company Chainalysis. This was because investors objected to the country’s strict regulatory stance and heavy business taxes.
The report tracks crypto adoption across four sub-categories in 151 countries and shows that India ranks high in terms of the use of centralized exchanges and decentralized financial assets from June 2023 to July 2024.
India’s position in different categories
| India | Rank |
| Overall index ranking | 1 |
| Centralized service value received ranking | 1 |
| Retail centralized service value received a ranking | 1 |
| DeFi value received ranking | 3 |
| Retail DeFi value received ranking | 2 |
For your information, let us tell you that India has taken a tough stand against cryptocurrencies since 2018. The Financial Intelligence Unit (FIU) is issuing show cause notices to nine offshore cryptocurrency exchanges in December 2023 for non-compliance with local regulations.
“India has also got a fairly widespread level of adoption across different assets of crypto despite restrictions, implying new participants to crypto would have been participating via services that were not banned,” said Eric Jardine, research lead at Chainalysis.
“Now we’ve started to see some of those restrictions get rolled back, for example with Binance, which is probably just going to amplify adoption in the country.”
On the other hand, the total value of global crypto activity increased substantially, between the fourth quarter of 2023 and the first quarter of 2024, reaching higher levels than in 2021 during the crypto bull market.
The 2024 Global Adoption Index:
Apart from India, seven of the top 20 countries in Chainalysis’ Global Adoption Index were Central and South Asian nations such as Indonesia, Vietnam, and the Philippines.
The report further states that the highest total decentralized transaction volumes carried out in retail-sized transfers, involving crypto worth less than $10,000, were recorded in countries with low per capita purchasing power.
However, the volatility of crypto markets poses significant risks. Dramatic changes in crypto values can cause marked financial losses to tolerant investors. In addition, the anonymity of trades raises concerns about money laundering and other illegal activities.
As India establishes itself as a global technology leader, the decisions it makes about cryptocurrencies today will shape its economic landscape for decades to come. Counteracting the digital wants of a young, ambitious population with the practical needs of economic governance and strength will be the key to harnessing the full power of crypto technologies and mitigating their intrinsic risks.
