India Continues to Lead in Cryptocurrency Adoption Amidst Regulatory Challenges

India's Unwavering Cryptocurrency Resilience

Internet adoption and cryptocurrency are flourishing in India, as the nation leads global crypto adoption for the second year. Despite facing strict regulations and high trading taxes, India showcases a remarkable appetite for digital assets. According to a report by blockchain analytics firm Chainalysis, adoption growth has seen a boost from lower-middle-income countries, while higher-income nations show a decline.

Expanding Exchange Landscape

Between June 2023 and July 2024, India's activity in centralized exchanges and decentralized finance has been commendable. The analysis accounts for adoption across 151 countries, with India maintaining a top position.

• The Financial Intelligence Unit (FIU) has taken action against non-compliant offshore exchanges.
• Binance faced a fine of INR 18.82 Cr ($2.25 Mn) post-registration to resume operations.
• KuCoin also registered but encountered a smaller penalty.

Global Trends in Crypto Adoption

Seven of the top twenty countries in Chainalysis' global adoption index hail from Central and South Asia, including Indonesia, Vietnam, and the Philippines. Lower purchasing power is linked to significant decentralized transactions under $10,000, further emphasizing diverse market conditions.

1. Indonesia experienced extensive digital asset trading, with inflows reaching $157.1 Bn by July's end.
2. Despite banning cryptocurrencies as a payment method, investment remains legal.
3. In light of recent developments, seven offshore crypto platforms are seeking to restart operations in India.

Exchanges including Bitfinex, MEXC Global, Kraken, and others will present their cases to the FIU, aiming to resume operations after settling previous legal disputes.