Skip to content
Sign In Subscribe
News — Crypto

India Leads Global Crypto Adoption Again, Chainalysis Report

The country’s high crypto capital gains tax (30%) and a 1% tax on all transactions (TDS) may have pushed some Indian investors to look at international exchanges with fewer restrictions.

,   and  Harshajit Sarmah
2 min read
  • India remains a top player in the global cryptocurrency market, leading this year's Global Adoption Index despite stringent taxes and regulations.
  • The Financial Intelligence Unit (FIU) issued notices to major international exchanges like Binance, KuCoin, and Kraken, with Binance fined ₹188.2 million in June 2024 for compliance violations.
  • The Bharat Web3 Association (BWA) lobbied the Indian government to reduce the tax burden on crypto, but no changes were addressed in the latest budget.

Chainalysis, last year, reported that India secured the top spot as a leading global cryptocurrency market, despite changing regulations and taxes. The country’s high crypto capital gains tax (30%) and a 1% tax on all transactions (TDS) may have pushed some Indian investors to look at international exchanges with fewer restrictions.

However, these factors didn't slow down crypto's overall growth in India, and the trend continues this year. India ranks second in the CSAO region for cryptocurrency value received and is now leading the world in this year's Global Adoption Index.

India has maintained a strict approach to cryptocurrencies through the years. In fact, the Financial Intelligence Unit (FIU) in December 2023 issued show-cause notices to nine international exchanges, including Binance, HTX (formerly Huobi), Kraken, Gate.io, KuCoin, Bitstamp, MEXC, Bittrex, and Bitfinex.

In June this year, Binance, the world's largest crypto exchange, was fined 188.2 million rupees ($2.25 million) after registering with the FIU a month earlier in hopes of restarting operations in India. KuCoin, which registered with the FIU in March, received a smaller fine of 3.45 million rupees.

In July, the Bharat Web3 Association (BWA) urged the Indian finance ministry to reduce the TDS on VDA transfers and to review the flat tax rate on crypto profit. However, there was no mention of crypto or VDAs in Finance Minister Nirmala Sitharaman's speech.

Edited by Harshajit Sarmah

ALSO READ:

Binance Cleared to Operate in India with $2.25M Fine
The FIU stated that the fine was imposed because Binance continued serving Indian clients and operating in India without meeting its legal obligations under the Prevention of Money Laundering Act (PMLA), 2002.
NewzchainHarshajit Sarmah

Related

Latest