Tech
India Leads in Popular Adoption of Cryptocurrencies: Report
According to blockchain analytics platform Chainalysis’s 2023 Global Crypto Adoption Index, India ranks first when it comes to cryptocurrency adoption by common people, released this month.
Chainalysis’s index, released as part of its annual “Geography of Cryptocurrency” report, focuses on cryptocurrency adoption by everyday residents, rather than just measuring transaction volumes.
While India beat other countries that had high rates of cryptocurrency trading and mining, it also came in second place when considering major countries in terms of estimated raw cryptocurrency value received between July 2022 and June 2023. The India recorded approximately $250 billion in cryptocurrency value in the past year, behind only the United States and the approximately $1 trillion in cryptocurrency received over the same period.
The Chainalysis report highlighted that cryptocurrency adoption rates in India have soared despite the country’s tax regime and regulatory environment, which he described as “challenging.”
(For the day’s top tech news, subscribe to our tech newsletter Today’s Cache)
India currently taxes cryptocurrency-related earnings at 30% and also deducts 1% at source.
“While all exchanges operating in the country are required to collect TDS taxes from Indian users, many international exchanges do not do so effectively, which may attract Indian users to them over exchanges focused primarily on India,” notes the Chainalysis report. , indicating an increase in web traffic from India to foreign cryptocurrency exchanges after the implementation of TDS last year.
The report noted that Indian stock markets were losing ground due to this irregularity.
Homegrown cryptocurrency exchanges have also faced legal action in the country. WazirX, for example, saw its funds frozen and was investigated by the Enforcement Directorate (ED) last year.
“ED searches director of crypto exchange WazirX and freezes his bank assets worth Rs 64.67 Crore for assisting accused instant loan APP companies in laundering fraudulent money through purchase and transfer of assets virtual cryptocurrencies,” the regulator tweeted on August 5, 2022 .
Indian cryptocurrency traders invest in high-value assets like Bitcoin and Ether, but also enjoy meme-based assets like Dogecoin and the Shiba Inu token.
While industry stakeholders have called on the government to come up with more nuanced crypto regulations to stimulate both entrepreneurs and investors, the Indian government has remained wary of the market.
Last year, cryptocurrency traders also urged the government to lower the 30% tax on earnings.
This is a Premium item available exclusively to our subscribers. To read over 250 such premium articles every month You have exhausted your limit of free articles. Please support quality journalism. You have exhausted your limit of free items. Please support quality journalism. X You have read {{data.cm.views}} on {{data.cm.maxViews}} free articles. X This is your last free article.