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India has maintained its position as the global leader in cryptocurrency adoption for the second consecutive year, according to a new report by blockchain analytics firm Chainalysis.
The report, which assessed cryptocurrency activity in 151 countries from June 2023 to July 2024, noted India’s prominent usage of both centralised exchanges and decentralised finance (DeFi) platforms. This comes despite the country’s strict regulatory framework and heavy taxes on cryptocurrency trading.
Since 2018, India has enforced a tough stance on digital assets, and in December 2023, the Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore cryptocurrency exchanges for failing to comply with local regulations. Despite these challenges, Indian investors have continued to engage with cryptocurrencies in significant numbers.
The Chainalysis report also revealed that India is part of a larger regional trend, with seven of the top 20 countries for crypto adoption coming from Central and South Asia, including Indonesia, Vietnam, and the Philippines. These countries saw notable transaction volumes in smaller, retail-sized transfers of less than USD 10,000, suggesting that cryptocurrency is particularly popular in nations with lower purchasing power.
Indonesia, in particular, recorded USD 157.1 billion in digital asset inflows over the 12-month period, despite a ban on using cryptocurrencies as a means of payment. The country permits investment in digital assets and this regulatory environment has fostered strong trading activity.
