Indonesia enters top 3 countries by crypto adoption, replacing Vietnam: Chainalysis

Indonesia has entered Chainalysis’ global crypto adoption index for the first time, breaking into the top 3, as global crypto activity surpasses 2021 bull market levels.

Indonesia has appeared on Chainalysis’ global crypto adoption index for the first time, moving past Vietnam to third place as global crypto activity reaches levels not seen since the 2021 bull market.

According to data from Chainalysis, the total value of global crypto activity increased significantly between the last quarter of 2023 and the first quarter of 2024, surpassing the previous peak. The new ranking places Indonesia behind India and Nigeria, which have continued to lead the index since 2023.

Chainalysis’ Global Crypto Adoption Index 2024 | Source: Chainalysis

The increase in adoption is part of a broader trend, with cryptocurrency activity increasing across countries across all income groups, while high-income countries have seen a decline since the start of 2024.

Last year, growth in crypto adoption was primarily driven by lower-middle-income countries. However, this year, crypto activity has increased in countries across all income groups, with a decline in high-income countries since the beginning of 2024.

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Indonesia rises in global crypto adoption

Indonesia’s crypto surge comes amid efforts to create a regulatory framework around digital assets. In April 2024, the country signed an agreement with Australia to establish a crypto information-sharing framework aimed at improving tax compliance and asset identification.

Indonesia’s financial regulator, the Financial Services Authority, has also stepped up its efforts to regulate the sector, requiring crypto companies to undergo a regulatory testing process before receiving a license by 2025.

Chainalysis says the surge in global crypto activity is being driven by a variety of factors. The launch of spot Bitcoin exchange-traded funds in the U.S. has fueled institutional growth, while stablecoin adoption has increased in low-income regions, particularly retail transactions in Sub-Saharan Africa and Latin America.