India Emerges as the Second Largest Crypto Market in the World
A recent report by blockchain research firm Chainalysis reveals that India has become the world’s second-largest crypto market in terms of transaction volume. Despite facing a 30% tax on gains and a 1% tax on transactions, India recorded nearly $269 billion worth of crypto transactions in the year through June. This places India just behind the US and slightly ahead of the UK.
Central and Southern Asia and Oceania Witness Significant Crypto Growth
The report highlights that Central and Southern Asia, along with Oceania, account for approximately 20% of the global crypto market. Countries like the Philippines and Pakistan have also experienced substantial growth in this sector. The Philippines, for example, sees a significant portion of its crypto-related web traffic directed towards gaming and gambling platforms. On the other hand, Pakistan and Vietnam have a higher proportion of activity happening on peer-to-peer exchanges, which are more commonly used in emerging markets or countries with stricter capital controls.
High Inflation Drives Crypto Adoption in Emerging Markets
Chainalysis suggests that users in countries like India, Pakistan, and Vietnam turn to cryptocurrencies as a means to preserve their wealth in light of high inflation rates. These individuals are compelled to explore alternative avenues to safeguard their financial stability. The adoption of cryptocurrencies provides them with an opportunity to protect their assets from depreciating value and potential economic instability.
Hot Take: India Surpasses Wealthier Nations to Claim Second Spot in Crypto Market
Despite facing significant tax burdens, India has managed to establish itself as a major player in the global crypto market. Its remarkable transaction volume positions it ahead of wealthier nations such as Germany and the UK. This achievement demonstrates the growing popularity and acceptance of cryptocurrencies among Indian users. It also underscores the economic challenges faced by individuals in emerging markets, who are increasingly turning to digital assets as a means of wealth preservation. As India continues to embrace cryptocurrencies, its impact on the global crypto landscape is likely to grow even further.
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