Originally published on: September 11, 2024
India stands out as the global frontrunner in cryptocurrency adoption, surpassing regulatory hurdles and maintaining its position at the forefront of the digital asset revolution. Despite the ban on offshore crypto exchanges, India continues to dominate the world in terms of embracing cryptocurrencies, as per data from Chainalysis.
Chainalysis Report Highlights India’s Crypto Dominance
In the recently released fifth annual Chainalysis Global Crypto Adoption Index, India secured the top rank among 151 countries assessed for their crypto adoption levels. This achievement comes on the heels of India’s leading performance in the previous year’s report, solidifying its status as the largest crypto market for adoption in 2024.
Breaking Down the Crypto Adoption Index
Chainalysis’ adoption index is based on various sub-indexes, including on-chain crypto values received by centralized exchanges (CEX) and decentralized finance (DeFi) services. Noteworthy is India’s resilience in crypto adoption despite regulatory crackdowns on offshore exchanges.
India’s Stance on Offshore Exchanges
In late 2023, India’s Financial Intelligence Unit (FIU) flagged nine offshore exchanges, citing non-compliance with the country’s Anti-Money Laundering laws. Despite the subsequent ban on these exchanges catering to Indian customers, data from Chainalysis indicates that they still accounted for a significant portion of CEX activity in India.
Future Prospects for Offshore Exchanges in India
Recent updates suggest that India’s FIU is reconsidering its stance on offshore exchanges, with reports indicating the approval of two additional platforms to resume operations in the country. This shift could potentially open up new avenues for crypto enthusiasts in India and further propel the country’s crypto adoption journey.
India’s Crypto Engagement in the Global Context
India not only boasts the highest global crypto adoption rates but also secured the second position in the Central, Southern Asia, and Oceania (CSAO) region in terms of crypto value received. Despite regulatory challenges, India received approximately $143 billion in crypto from July 2023 to June 2024, reaffirming its significance in the global crypto landscape.
Looking Ahead
As cryptocurrency activity continues to expand globally, India’s resilience and proactive engagement in the digital asset space position it as a key player in shaping the future of finance. With regulatory dynamics evolving and renewed interest in offshore exchanges, India’s crypto journey is poised for further growth and innovation.
