India Continues to Lead Global Crypto Use

India, the most populous nation, continues to lead globally in cryptocurrency adoption, even amid a ban on offshore exchanges, as noted by Chainalysis.

After leading Chainalysis' crypto adoption report last year, India remains the top global crypto market in 2024, according to the blockchain firm's fifth annual Global Crypto Adoption Index, published on September 11.

Out of 151 countries evaluated, India ranked highest in the global crypto adoption index, surpassing nations such as Nigeria, Indonesia, the United States, and Vietnam.

The Chainalysis adoption index is based on four sub-categories, including on-chain crypto value received by both centralized exchanges (CEX) and decentralized finance (DeFi) platforms, with additional retail-focused sub-categories for both.

India’s Financial Intelligence Unit (FIU) banned Binance and other offshore exchanges, yet users continued to access them in 2024.

In December 2023, India’s FIU, part of the Department of Revenue, identified nine offshore exchanges as non-compliant with Anti-Money Laundering regulations.

These included notable companies like Binance, HTX (formerly Huobi), Kraken, Gate.io, KuCoin, Bitstamp, MEXC, Bittrex, and Bitfinex.

Following this, the FIU requested India’s Ministry of Electronics and Information Technology to block access to the websites of these non-compliant exchanges for Indian users.

Despite the restrictions, these nine blocked exchanges still represented a significant portion of CEX transaction volume in India, according to Chainalysis data.

For instance, by April 2024, they accounted for nearly 40% of the total CEX usage in India.

Chainalysis’ analysis shows that the ban had little effect on the exchanges' usage, as Indian users continued to access them through apps they had previously downloaded or other trading applications that remained functional.

Since the exchange bans in late 2023, India’s FIU has eased its approach, allowing Binance and KuCoin to re-enter the market after paying fines in May 2024.

In early September, reports suggested that two more offshore exchanges were under consideration for re-approval in India.

In addition to its top ranking in global crypto adoption, India also ranked second in the Central, Southern Asia, and Oceania (CSAO) region in terms of crypto value received.

According to Chainalysis, India received around $143 billion in crypto between July 2023 and June 2024, second only to Indonesia, which took in $157 billion.

Overall, the CSAO region saw $750 billion in crypto inflows over the past year, making up 16.6% of the global total, placing the region behind only North America and Western Europe.

Chainalysis reports that crypto activity in the CSAO region was primarily driven by CEXs, with transfers of over $10,000 making up the largest portion of value received, suggesting significant professional and institutional involvement.

Sources:

https://cointelegraph.com/news/india-tops-crypto-use-offshore-exchange-ban

https://pib.gov.in/pressreleasepage.aspx?prid=1991372

https://economictimes.indiatimes.com/news/india/binance-kucoin-get-fiu-nod-to-register-and-trade-in-india/articleshow/110018834.cms?from=mdr