India Tops 2024 Crypto Adoption Index Despite Tax Challenges

India has retained its position as the top country for local investors engaging with cryptocurrency. This comes despite ongoing government efforts to dissuade the adoption of digital assets.

As per the latest research from Chainalysis, reviewed by CryptoPotato, India also topped last year’s Crypto Adoption Index.

India at the Forefront of Crypto Adoption

The study assessed countries globally based on their involvement with centralized services, retail centralized services, decentralized finance (DeFi) services, and retail DeFi services. Unlike the metrics from 2023, this year’s data excluded the Peer-to-peer (P2P) exchange volume, noting “a significant decline in activity” across several regions. The halting of operations by LocalBitcoins.com, a key P2P exchange, contributed to this performance drop.

India demonstrated the highest engagement with centralized crypto platforms, though it ranked second and third in retail DeFi activities and DeFi services, respectively. This marks a decline from the leading positions it held in previous years.

By consistently holding its leading status, investors in India show a strong commitment to advancing crypto adoption, notwithstanding the government’s strict policies on crypto assets. A recent report has indicated that the Indian finance minister maintains a 1% tax deducted at source (TDS) rate on crypto transactions, along with a 30% income tax on gains from cryptocurrencies.

Looking ahead, there is uncertainty about whether the Indian crypto market will sustain its leading position in the coming year, particularly after the significant $230 million hack of the local crypto exchange, WazirX. Public data indicates that 4.2 million Indians suffered considerable losses due to the exchange’s breach.

CSAO Secures $750B in Crypto Inflows

Research from Chainalysis disclosed that seven of the top 20 countries are from Central and Southern Asia and Oceania (CSAO), marking a slight rise from the previous year’s statistics. These nations include India, Indonesia, Vietnam, the Philippines, and Pakistan.

Between July 2023 and June 2024, CSAO accumulated $750 billion in crypto asset inflow, accounting for 16.6% of market share. This Index solidifies CSAO’s position as the third leading region in crypto adoption.