September 21, 2023

India On Way To Be 2nd Largest Crypto Market

Crypto in India

Crypto in India

India has become the world’s second-largest crypto market in just one year, handling a whopping $268.9 billion in transactions.

The Central & Southern Asia and Oceania (CSAO) region is now a significant player in the global cryptocurrency landscape, particularly due to grassroots adoption. Despite regulatory challenges in Hong Kong and high tax rates in India, the sector is thriving.

Surprisingly, high tax rates have not deterred India’s demand for cryptocurrencies, with the Indian government imposing a 30% tax on crypto gains and a 1% tax on all transactions. Aside from volume, India also ranks highly in decentralized exchanges, centralized exchanges, lending protocols, and NFT protocols.

Although the uneven implementation of transaction taxes has presented challenges for local exchanges, the market’s enthusiasm remains strong.

According to Chainalysis’ 2023 Geography of Cryptocurrency Report, CSAO accounts for nearly 20% of global crypto activities, with six countries in the region ranking in the Global Crypto Adoption Index, including India, Vietnam, the Philippines, Indonesia, Pakistan, and Thailand. The market is showing signs of maturity, as evidenced by a notable increase in DeFi activities and institutional adoption.

The Philippines has recently gained attention for its enthusiastic embrace of play-to-earn games like Axie Infinity, particularly in light of the COVID-19 pandemic.
This trend has led to increased acceptance of cryptocurrency, potentially paving the way for more sophisticated applications of digital assets. In addition to private sector initiatives, the Philippines has benefited from regulatory sandboxes, which could position the country as a leading hub for blockchain technology in Asia.

Meanwhile, in Pakistan, crypto adoption has been primarily driven by economic necessity, as citizens seek to hedge against the high inflation rates in the country. Despite a current ban on trading, there are indications that the government may be exploring regulatory frameworks to legitimize the use of cryptocurrency.

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