India leads 2024 crypto adoption rate despite high tax rate

India has once again ranked as the leading country with local investors adopting crypto. The latest metric comes despite ongoing government efforts to discourage the adoption of digital assets.

According to the latest research from Chainalysis, seen by CryptoPotato, India also led the index of crypto adoption last year.

India leads the way in crypto adoption

The study ranked global countries based on their commitments to centralized services, retail centralized services, decentralized financial services (DeFi) and retail DeFi services. Unlike the 2023 metrics, this year’s record excluded peer-to-peer (P2P) exchange volume, citing “a substantial decline in activity” in several regions. LocalBitcoins.com, a notable P2P exchange, halted operations last year, causing performance to drop.

India saw the most interaction with centralized crypto entities. However, it ranked second and third in retail DeFi operations and DeFi services. The latter metric is a decline from the country’s leading position last year.

By maintaining its leading position, investors in the Asian country demonstrate their commitment to driving cryptocurrency adoption despite the government’s strict stance on crypto assets. A recent report confirmed that the Indian Finance Minister maintains a tax deducted at source (TDS) rate of 1% on crypto transactions and a 30% income tax on crypto profits.

Looking ahead, it remains to be seen whether the Indian crypto market will maintain its leadership position from next year due to the severity of a recent $230 million hack of a local crypto exchange, WazirX. Public data shows that 4.2 million Indians suffered substantial losses from the exchange default.

CSAO captures $750 million in crypto inflow

Chain analysis research revealed that seven of the top 20 countries belong to Central and South Asia and Oceania (CSAO), a slight increase from last year’s record. These countries include India, Indonesia, Vietnam, the Philippines and Pakistan.

Between July 2023 and June 2024, CSAO blocked $750 billion in crypto asset inflows, representing 16.6% of the market share. This index consolidates CSAO’s third position among the leading regions that adopt crypto.

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