Bitrabo Editorial
India has once more claimed the title of the leading nation in cryptocurrency adoption, as revealed in a recent analysis by blockchain research company Chainalysis.
This achievement marks India’s second year at the forefront, showcasing persistent engagement from investors despite stringent regulations and steep trading taxes within the country.
Growth of Cryptocurrency in India
The Chainalysis study, which assesses adoption in four key categories across 151 nations, underscores India’s impressive performance in both centralized exchange platforms and decentralized finance (DeFi) investments from June 2023 to July 2024.
Even with a strict regulatory framework in place since 2018, the report shows that India has experienced widespread engagement with several crypto assets. Eric Jardine, the lead researcher at Chainalysis, remarked that this indicates new users are discovering avenues to interact with cryptocurrencies through services that remain operational.
India’s regulatory climate has posed significant challenges. In December 2023, the Financial Intelligence Unit (FIU) served notices to nine international cryptocurrency exchanges for not adhering to local regulations. However, there are signs of a gradual relaxation of these constraints.
For example, Binance, the world’s largest crypto exchange by trading volume, registered with the FIU in June and subsequently incurred a penalty of 188.2 million rupees (about $2.25 million) to reinstate its operations in India. Likewise, KuCoin registered with the FIU in March and faced a lesser fine of 3.45 million rupees.
Bitcoin ETF Launch Fuels Global Activity
The report also notes that seven out of the top twenty countries in Chainalysis’ global adoption index are situated in Central and South Asia, including Indonesia, Vietnam, and the Philippines.
Indonesia notably experienced considerable trading activity, with reported digital asset inflows of $157.1 billion over the past year despite restrictions on using cryptocurrencies for transactions.
The introduction of Bitcoin exchange-traded funds (ETFs) in the United States has had a considerable impact on global cryptocurrency activity. The analysis indicates that this event has led to a notable rise in Bitcoin transactions, particularly in North America and Western Europe, where institutional transfers have seen remarkable growth compared to the previous year.
Additionally, there has been a significant rise in DeFi activity across areas like Sub-Saharan Africa, Latin America, and Eastern Europe. This growth likely reflects an increasing interest in a variety of digital assets aside from Bitcoin.
As of the most recent updates, Bitcoin, the leading cryptocurrency, is exhibiting intense volatility. Within a 24-hour window, it has struggled to maintain its price above $57,650, after a temporary dip towards $55,000 earlier on Wednesday.
Image sourced from DALL-E, with chart data from TradingView.com