India, Nigeria, and Thailand Ranked as Top Three Countries in Chainalysis’ 2023 Global Crypto Adoption Index

9:25 pm (12 days ago)

September 12, 2023

Low- to middle-income countries are leading the grassroots adoption of cryptocurrencies, while institutional adoption in high-income countries continues to gain momentum despite the bear market. Furthermore, cryptocurrencies are predicted to serve the needs of users in both high-income and developing countries and play a significant role in the future. India stands out as a pioneering country in this field and attracts attention with its tax policies specific to cryptocurrency transactions.

FTX Bankruptcy Reduces Trust in Crypto

Blockchain analysis firm Chainalysis published a quote in its annual Index report stating that the regions of Central and South Asia and the wider Oceania dominate the top six of the ten countries in the world that are part of the index. The Index highlights that grassroots cryptocurrency markets worldwide have been on a decline as a whole after the bankruptcy of FTX in 2022. However, lower-middle-income countries, classified under the World Bank’s income classification, have shown the strongest recovery in grassroots crypto adoption in the past 12 months.

“In fact, LMI is the only country that has remained above its level from the third quarter of 2020, just before the latest bull market.”

Chainalysis continues to emphasize the promising aspects that can be derived from this data, highlighting that countries in the LMI category typically have growing industries and populations, accounting for over 40% of the world’s population.

“If LMI countries are the future, the data suggests that crypto will be a major part of it.”

Surprising Data from Advanced Countries

Corporate adoption driven by institutions in high-income countries is gaining momentum despite the prolonged bear market. The report also predicts that cryptocurrencies have the potential for both bottom-up and top-down adoption, serving the needs of users in both high-income and developing countries.

According to Chainalysis’ index, India continues to be the largest cryptocurrency market in the region and leads in grassroots adoption. It has also become the second-largest global crypto market based on estimated raw transaction volume, surpassing other major economies. Chainalysis also highlights India’s unique Tax Deducted at Source (TDS) plan, which requires a 1% tax deduction from the user’s balance during the transaction to be completed.