India has become the second-largest crypto market in the world by gross trading volume, beating out the UK, Turkey and Russia. And this despite difficulties linked to tax laws, according to a new report from Chainalysis.
“India leads the world in popular adoption, as measured by our Global Cryptocurrency Adoption Index,” he writes, saying volumes totaled nearly $269 billion between July 2022 and June 2023. “Perhaps most impressive of all is that India’s emergence as a major cryptocurrency market comes despite a regulatory and tax environment in which the industry may struggle to operate. ‘adapt. “
Chainalysis noted that India currently taxes crypto at higher rates than most countries, with a 30% cut on earnings and a 1% tax on all transactions. He said uneven application of the transaction tax could make it harder for local exchanges to compete.
Estimated gross trading volume by country. Image: On-Chain Analysis
“A huge demand”
“While these issues are significant, they do not appear to have dampened India’s huge demand for cryptocurrency – as long as that demand exists, crypto will always have a place in the world’s second-largest country,” a writes Chainalysis.
The United States is by far the largest crypto market in the world, according to the report.
On a regional basis, Central and South Asia and Oceania account for 20% of the global cryptocurrency market, according to Chainalysis. He said the region was probably “the most vibrant and fascinating cryptocurrency market in the world.”
Chainalysis highlighted that recent adoption in the Philippines was driven by play-to-win Axie Infinity. In Pakistan, meanwhile, it is necessity that drives growth.
“The need for wealth preservation in the face of high inflation and currency devaluation appears to be the reason many Pakistanis have turned to crypto,” he writes.
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