India continues to dominate the global cryptocurrency landscape, maintaining its position as the top country for crypto adoption despite a ban on offshore crypto exchanges, as reported by blockchain analysis firm Chainalysis. In its latest Global Crypto Adoption Index, Chainalysis ranks India first out of 151 countries, surpassing nations like Nigeria, Indonesia, the United States, and Vietnam.
India’s Financial Intelligence Unit (FIU) imposed a ban on nine major offshore exchanges in December 2023, including Binance, HTX, Kraken, and KuCoin, for non-compliance with Anti-Money Laundering laws. Despite the ban, Indian users continued to access these platforms, accounting for nearly 40% of all centralized exchange activity in the country by April 2024. This defiance highlights the determination of Indian crypto enthusiasts to stay engaged with global markets.
Chainalysis reports that the ban has not significantly reduced the use of offshore exchanges. Many users continued to trade through downloaded apps or alternative methods. In response to the persistence of the local crypto community, India’s FIU softened its stance, allowing some exchanges like KuCoin and Binance to register after paying fines in May 2024. Reports suggest that further relaxations could be on the horizon, with two additional offshore platforms potentially resuming operations.
Regionally, India ranks second in the Central, Southern Asia, and Oceania (CSAO) zone for crypto value received, trailing only behind Indonesia. Between July 2023 and June 2024, India garnered approximately $143 billion in crypto, part of the region’s $750 billion total, which represents 16.6% of global crypto inflows. The CSAO region’s high inflows were driven mainly by centralized exchanges, indicating significant professional and institutional activity.
India’s crypto adoption story reveals a complex interplay between regulation, user resilience, and a rapidly evolving market, positioning the country as a critical player in the global crypto ecosystem.