Deep Dive: Chainalysis 2024 Crypto Adoption Index for Southeast Asia and India

1. Introduction: A Dynamic Shift in Cryptocurrency Adoption

Southeast Asia and India have emerged as a global leader in cryptocurrency adoption. The region has become a focal point for blockchain activity, driven by 1) grassroots engagement, 2) professional trading, and 3) rising institutional interest. As DeFi and CEX expand globally, SEA is not only keeping pace but often at the forefront of the developing crypto landscape.

The Global Crypto Adoption Index by Chainalysis underscores the region’s impact on the Web3 industry. Malaysia and Singapore are still falling behind other SEA countries, while Cambodia has advanced by 13 positions. Indonesia now ranks third, reflecting a rapid rise in adoption, while Vietnam, the Philippines, and Thailand have experienced slight declines.

2. Comparison of Key Changes between 2023 and 2024

Chainalysis calculates this index based on four core factors: 1) centralized service value received ranking, 2) retail centralized service value received ranking, 3) DeFi value received ranking, and 4) retail DeFi value received ranking.

This report explores the four factors of the Global Crypto Adoption Index, along with our insights on the shifting crypto landscape across SEA and India. It compares key changes between 2023 and 2024 and examines the underlying influences driving these movements in the adoption index.

2.1. India: The Crypto Behemoth

India has retained its #1 position in the 2023 and 2024 Global Crypto Adoption Index, solidifying its leadership in cryptocurrency adoption. While India’s centralized service metrics have remained stable, DeFi factors have seen a slight decline, primarily due to rising activity in other countries. Notably, Indonesia and Nigeria have experienced rapid adoption, with Nigeria recording over $30 billion in DeFi transactions last year.

Additionally, there have been some changes related to centralized service metrics, though they appear to have had minimal impact. For instance, in December 2023, India’s Financial Intelligence Unit notified nine offshore exchanges, including Binance, of impending regulatory actions. Shortly afterward, the Ministry of Electronics and Information Technology (MeitY) began implementing URL blocks to restrict access for Indian users.

However, the Esya Center reported that the impact of these blocks was short-lived. Users continued accessing exchanges through pre-downloaded apps, with some apps still available for download after the government ban. Tax conditions have also stayed the same, with a 30% tax on capital gains from cryptocurrency and a 1% withholding tax (TDS) on all transactions, yet trading activity appears to remain robust.

India’s position in the blockchain landscape could evolve by 2025, led by the National Blockchain Framework (NBF) launched by MeitY in 2024. This government-backed initiative leverages permissioned blockchains to enhance security, transparency, and trust in public services.

This support remains focused on structural applications rather than investment incentives, as the tax policy is expected to remain unchanged. Consequently, participants in India’s crypto market are pressing for tax reductions in the 2024-25 Annual Budget to foster a more favorable investment environment. Nonetheless, the outcome of these measures on the crypto adoption index—especially as it emphasizes investment factors—remains uncertain.

2.2. Indonesia: A Surge in Crypto Engagement

Indonesia has made a significant leap in the Global Crypto Adoption Index, advancing from 7th place in 2023 to 3rd in 2024, with notable improvements in both centralized services and DeFi rankings. Continued growth in centralized services this year could further elevate its adoption ranking in the coming year.

Read the full version at Tiger Research Reports