According to Chainalysis, India ranks first in the adoption of grassroots cryptocurrencies and even ranks first in a difficult regulatory environment.
The country ranks first in four parameters including value of centralized services received, value of retail centralized services received, value of defi received and value of retail received. According to the report, India ranked fourth last year.
The report combines on-chain and real-world data to measure which country leads the grassroots cryptocurrency world. The report explains that grassroots crypto adoption is not about which countries have the highest raw transaction volume, but rather which countries are where ordinary people are accepting cryptocurrencies on a daily basis.
Nigeria ranks second in the index, followed by Vietnam, the United States and Ukraine. The report also said that crypto adoption saw a dramatic boost in low-income countries after falling in late 2022, spurred by the collapse of FTX.
This is happening despite the fact that cryptocurrency trading and investment in the country have been suppressed due to tax rules introduced by the government. India imposes a 30% gains tax on cryptocurrency transactions and a 1% TDS, hurting trading volumes. However, India is also advocating for global cryptocurrency legislation, most recently at the G20 summit hosted by the country.