Overview of Crypto Adoption Trends India has once again emerged as a global leader in cryptocurrency adoption, according to a recent report by blockchain analytics firm Chainalysis. For
India has once again emerged as a global leader in cryptocurrency adoption, according to a recent report by blockchain analytics firm Chainalysis. For the second consecutive year, India has topped the charts in the usage of both centralized exchanges and decentralized finance (DeFi) assets. This achievement is particularly noteworthy given the country’s stringent regulatory environment and high taxes on crypto transactions.
The Chainalysis report, which covers global crypto adoption across 151 countries from June 2023 to July 2024, highlights India’s remarkable position in the crypto landscape. Despite maintaining a tough stance on cryptocurrencies since 2018, with significant regulatory measures including the issuance of show-cause notices to nine offshore exchanges in December 2023, India has continued to lead in crypto adoption.
Eric Jardine, research lead at Chainalysis, noted, “India has also got a fairly wide spread 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.”
India’s regulatory environment has been notably stringent, with the Financial Intelligence Unit (FIU) cracking down on non-compliant exchanges. In June 2024, Binance, the world’s largest cryptocurrency exchange, was fined 188.2 million rupees ($2.25 million) following its registration with the FIU, aimed at resuming its operations in the country. KuCoin, another major player, registered with the watchdog in March 2024 and faced a smaller penalty of 3.45 million rupees.
These regulatory measures reflect India’s cautious but evolving approach towards cryptocurrency. The recent easing of some restrictions, such as the increased operational scope for Binance, is expected to further boost crypto adoption in the country.
The Chainalysis report reveals that while crypto adoption growth in the past year was predominantly driven by lower-middle-income countries, there has been a notable shift in activity. High-income countries have seen a decline in crypto engagement since early 2024, contrasting with the increased adoption observed in emerging markets.
Among the top 20 countries for crypto adoption, seven are located in Central and South Asia, including Indonesia, Vietnam, and the Philippines. Indonesia, despite banning cryptocurrencies as a means of payment, allows investment in digital assets. The country recorded an impressive $157.1 billion in digital asset trading inflows over the past year, highlighting robust trading activity.
As the regulatory environment in India continues to evolve, the potential for increased adoption is significant. The gradual rollback of some restrictions, combined with the growing interest from investors and users, suggests a promising future for the Indian crypto market.
Jardine added, “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.”
India’s sustained position as a leader in global cryptocurrency adoption underscores its resilience and growing crypto market potential. Despite facing regulatory hurdles and high trading taxes, the country’s strong engagement with centralized exchanges and DeFi assets sets a precedent for other nations navigating similar challenges. As regulations continue to evolve, India is likely to see even greater growth and innovation in its crypto sector.
