India Secures the Top Position in Chainalysis’ 2023 Global Crypto Adoption Index, Despite Stringent Tax Regulations
Chainalysis, a prominent global blockchain surveillance firm, has unveiled a preview of its annual crypto adoption report, providing insights into the adoption of digital currencies across different nations.
The Global Crypto Adoption Index meticulously assessed over 150 countries using a range of metrics to measure the organic adoption of cryptocurrency from the ground up.
Indian Government’s Stringent Tax Regulations Fail to Dampen Crypto Adoption
India presently enforces substantial taxes on cryptocurrency gains and requires taxation for each cryptocurrency transaction. Nevertheless, this hasn’t dissuaded Indians from actively engaging in the cryptocurrency landscape.
During a conversation with CryptoNews, Kiran Mysore Vivekananda, the Chief Public Policy Officer at CoinDCX, expressed:
“Last year, when India introduced TDS (Tax Deducted at Source), their objective was to discourage crypto investments. However, the recent Chainalysis report indicates that India is now at the forefront of cryptocurrency adoption. Our data reveals that 18% of active users on the top five international exchanges are of Indian origin. This clearly demonstrates that adoption hasn’t diminished. Thus, the initial purpose behind introducing TDS has not been achieved.”
He also underscored the significance of achieving a global consensus on taxation.
Following the government’s implementation of substantial taxation on cryptocurrency transactions, a significant number of cryptocurrency users in India shifted towards Peer-to-Peer (P2P) mode on foreign exchanges. This shift resulted in a considerable drop in trading volume on local exchanges, reaching an all-time low.
Cryptocurrency Adoption Surges in Economically Vulnerable Regions
India’s prominent position is closely trailed by Nigeria and Vietnam, underscoring a discernible pattern of growing cryptocurrency adoption in Central and Southern Asia, as well as Sub-Saharan Africa.
The United States secures the fourth position in the index, with Ukraine completing the top five.
A noteworthy discovery from the report highlights that individuals in economically challenged nations tend to allocate a more substantial portion of their assets to cryptocurrencies.
These nations have witnessed the most substantial resurgence in grassroots cryptocurrency adoption over the past year.
This underscores the idea that in regions where traditional financial infrastructure is less robust or accessible, digital currencies are increasingly assuming a pivotal role in bridging financial gaps.
