India, Nigeria and Thailand have been ranked as the top three countries in Chainalysis's 2023 Global Crypto Adoption Index, leading grassroots adoption of cryptocurrencies even among lower middle income (LMI) countries. The blockchain analytics firm has released an excerpt from the report highlighting that the Central and South Asia and Oceania region is at the top of its index, comprising six of the top 10 countries. The index highlights that the FTX collapse of 2022 has led to a worldwide decline in cryptocurrencies. Lower middle income countries ranked first in the World Bank's ranking of countries by funding, showing that cryptocurrency adoption has grown the strongest over the past 12 months.
Chainalysis' data highlights several promising aspects, pointing out that countries in the LMI category generally have developing industries and populations. It covers more than 40% of the world's population. The data also shows that the pace of institutional adoption, driven by organizations in high-income countries, is increasing despite a prolonged bear market. The report also predicts the potential adoption of cryptocurrencies, where crypto assets can meet the needs of users in both high-wealth and developing countries.
According to the Chainalysis Index, India remains the largest cryptocurrency market in the region and leads the way in grassroots adoption. This is ahead of other major economies. It has become the second largest crypto market by estimated transaction volume globally. Chainalysis also noted India's unique tax cut applicable to cryptocurrency transactions, with a 1% tax imposed on all transactions.
Along with this, recently India has also played an important role in implementing the Global Crypto Framework. India has proved itself once again by organizing a successful G20 summit. During its G20 presidency, India has united all the G20 countries and prepared for a consensus for the regulation of crypto. Where all the countries decided that the crypto framework will facilitate the exchange of information between the G20 countries from 2027. Due to this, India may also get some big responsibilities. Among these responsibilities, a major responsibility of cryptocurrency regulation can also fall on India's share.
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