India’s crypto story is one of resilience and grassroots enthusiasm. Despite regulatory hurdles and global downturns, the nation has emerged as a leader in cryptocurrency adoption. How did India achieve this, and what does it mean for the future of crypto?
India’s Crypto Dominance: A Closer Look
- Global Leader: India ranks first in grassroots crypto adoption, surpassing countries with higher trading and mining activities.
- Raw Value: It secures second place in raw value received, indicating substantial crypto activity.
- Resilient Adoption: Despite a global decline in crypto adoption, India’s adoption remains robust.
Global Crypto Adoption Index: Chainalysis Report
According to the 2023 Global Crypto Adoption Index by Chainalysis, India has claimed the top rank in grassroots cryptocurrency adoption. This index evaluates cryptocurrency acceptance among the broader population rather than just transaction volumes.
India’s Crypto Traffic: Centralized Exchanges Dominate
India ranks higher than other countries with significant bitcoin trading and mining activity. The country received approximately $250 billion in cryptocurrency value between July 2022 and June 2023, trailing only the United States, which received approximately $1 trillion.
India ranked first in the overall index ranking, second in the centralized service value received ranking, third in the retail centralized service value received ranking, and fifth in the P2P exchange trade volume rating. Nigeria, Vietnam, the United States, Ukraine, the Philippines, and Indonesia follow India.
How Chainalysis Calculated Crypto Adoption
Chainalysis estimates transaction volumes for various types of cryptocurrency services and protocols to measure global cryptocurrency adoption. This volume is computed using regional traffic on websites that offer crypto services and protocols. Chainalysis also works with local cryptocurrency specialists and operators around the world, adding assurance and validity to their methodology.
Read Also: India Undertakes Cyber Police Training To Tackle Crypto Crimes
Global Adoption Declines, India Moves Ahead
Worldwide crypto use has decreased dramatically over the last two years. However, crypto adoption in India has continued to expand, despite the Indian government’s taxes on domestic investors.
Lower middle-income countries, including India, improved significantly after Q2 2022 and maintained those levels until Q2 2023. High-income countries such as the United States and other European countries have seen a reduction.
Despite tax law uncertainties, there has been an unprecedented surge in transaction volume.
Unprecedented Increase in Transaction Volume Despite Ambiguity in Tax Laws
India taxes cryptocurrency activity at a much higher rate than most other countries, with a 30% tax on gains. Indian consumers must pay an additional 1% tax on all transactions when using Indian centralized exchanges, which may be one of the reasons why Indian investors prefer offshore exchanges.
The data shows the gradual increase in traffic from Indian IP addresses on foreign exchanges. The survey also emphasizes the appeal of stablecoins in Pakistan due to the country’s very volatile economy.
Conclusion
As stakeholders ask the Indian government to adopt comprehensive cryptocurrency rules, they highlight the potential benefits for entrepreneurs and investors.
Despite the government’s reservations, crypto usage in India is increasing daily, paving the way for comprehensive and industry-centric legislation.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.