India has once again emerged as the leading country with local investors embracing crypto, despite the government’s ongoing efforts to dampen digital asset adoption. According to Chainalysis’ latest research, as reported, India also topped last year’s Crypto Adoption Index.
## India Leads Crypto Adoption
The study ranked global countries based on their interactions with centralized services, retail centralized services, decentralized finance (DeFi) services, and retail DeFi services. This year’s record excluded Peer-to-peer (P2P) exchange volume due to a noticeable decline in activity in various regions. LocalBitcoins.com, a significant P2P exchange, halted operations last year, impacting performance metrics.
India showed the highest engagement with centralized crypto entities but ranked second and third in retail DeFi operations and DeFi services, a drop from its leading position in the previous year. Despite the government’s stringent stance on crypto assets, the commitment of Indian investors to crypto adoption remains strong. A recent report confirmed that the Indian finance minister continues to enforce a 1% tax deducted at source (TDS) on crypto trades and a 30% income tax on crypto profits.
Looking ahead, it’s uncertain if India will maintain its leading position next year, given the impact of a recent $230 million hack of the local crypto exchange, WazirX. Public data shows that 4.2 million Indians suffered significant losses from this breach.
## CSAO Captures $750B in Crypto Inflow
Chainalysis research indicated that seven of the top 20 countries belong to Central and Southern Asia and Oceania (CSAO), a slight increase from last year. These countries include India, Indonesia, Vietnam, the Philippines, and Pakistan. Between July 2023 and June 2024, CSAO saw a $750 billion inflow in crypto assets, representing 16.6% of the market share. This index solidifies CSAO’s third position among leading regions in crypto adoption.
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