India's Crypto Adoption Soars Amid Tough Regulations: Chainalysis Report

India continues to lead in global cryptocurrency adoption for the second consecutive year despite strict regulations and high trading taxes. A report by Chainalysis highlights the country's strong usage of centralized exchanges and decentralized finance assets from mid-2023 to 2024. Significant penalties were issued against major exchanges like Binance and KuCoin for non-compliance.

India has maintained its position as a global leader in cryptocurrency adoption for the second year in a row, as per a recent report from blockchain analytics firm Chainalysis, despite facing stringent regulatory measures and steep trading taxes.

The comprehensive report, which analyzed the adoption of cryptocurrencies across four sub-categories in 151 countries, highlighted India's high ranking in the usage of both centralized exchanges and decentralized finance assets from June 2023 to July 2024. Since 2018, India has enforced a stringent stance against cryptocurrencies, with the Financial Intelligence Unit (FIU) issuing show-cause notices to nine offshore exchanges for non-compliance in December 2023.

Despite these hurdles, the report points to a diverse range of crypto assets being adopted in India, suggesting robust participation even in the face of restrictions. Eric Jardine, lead researcher at Chainalysis, noted the easing of some restrictions, such as those impacting Binance, could further boost adoption. Notably, Binance and KuCoin, both registered with the FIU, were fined substantial amounts. Additionally, other Asian countries like Indonesia have also shown significant crypto trading volume, emphasizing the regional trend towards crypto investments.

(With inputs from agencies.)