The Rise of India as a Major Player in the Cryptocurrency Market
In a recent report by blockchain analysis platform Chainalysis, it has been revealed that India has become the second-largest player in the global cryptocurrency market based on raw transaction volume. With an impressive amount of nearly $269 billion between July 2022 and June 2023, India has overshadowed countries like the United Kingdom, Turkey, and Russia.
“Raw transaction volume” refers to the total amount of transactions without adjustments or filtering. In the context of cryptocurrencies, this means the total amount of all transactions in a specific period, without taking into account factors such as double counting, internal transactions, or other factors that can distort the total.
What makes India’s performance remarkable is that the country is struggling with strict tax laws on cryptocurrency. Currently, India imposes a 30% tax on profits from crypto and 1% on all crypto transactions. Nevertheless, the demand for cryptocurrency in India continues to grow.
A Rising Cryptocurrency Market in Asia and Oceania
Despite the fiscal challenges, India leads in the basic adoption of crypto, as measured in Chainalysis’s Global Crypto Adoption Index. While the US remains the undisputed leader in cryptocurrency markets, with an amount of over $1,000 billion, Asia together with Oceania proves to be a significant counterbalance. Collectively, countries from these regions account for 20% of global crypto transactions.
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According to Chainalysis, the markets in Asia and Oceania are “the most dynamic and fascinating in the world.” One example of this is the Philippines, where the popularity of the game Axie Infinity has played a major role in crypto adoption. In Pakistan, people are increasingly turning to crypto to protect their wealth from the effects of high inflation and currency devaluation.