India is the second largest country in terms of volume of cryptocurrency transactions on a global scale

According to a new report by Chainalysis which is a well-known American blockchain analysis form, India is the top cryptocurrency market in the world and indeed of the most difficult tax laws in the country don't appear to have dehydrated the gigantic demand for digital tokens.

“India leads the world in grassroots adoption as measured by our Global Crypto Adoption Index, but perhaps even more impressively has become the second-largest crypto market in the world by raw estimated transaction volume, beating out several wealthier nations,” Chainalysis said in its Global Crypto Adoption Index 2023 report, this report identifies countries where investors are putting the greatest share of their wealth into cryptocurrencies.“Within the last year, regulatory agencies have provided more clarity on many issues, for instance formally decreeing that its money laundering rules will apply to cryptocurrency transactions,” it said.

The taxes on the gains are flat 30 per cent which is higher when compared with other investments such as equities. Moreover, a charge of 1 per cent is also charged which is known as Tax Deducted at Source (TDS) which has to be paid by the user.'The fact that India, the Philippines and Pakistan were all ranked among the top 10 in our 2023 Global Crypto Adoption Index bodes well for the UAE” Kim Grauer, research director at Chainalysis, said.

“These nationalities represent a significant portion of the UAE’s expat population, and the surging popularity among people of these nations is likely to correlate with increased crypto adoption in the Emirates as well.' There are many factors that effects the adoption of cryptocurrencies worldwide which have led to different usage for different types of cryptocurrency services/ usage.

While centralised exchanges take up the majority of web traffic in all of these countries, Chainalysis said there are some country-specific trends in this year’s research.The Philippines has a huge share of crypto-related web traffic running around the gaming and gambling platforms at 19.9 per cent while Vietnam is just below at 10.8 per cent.“From being a hedge against hyperinflation as in Pakistan, to potentially serving as an additional source of income as in the Philippines, the variation in grassroots utilisation demonstrates just how versatile cryptocurrencies are and how effectively they can be adapted to the context of a particular nation,” Ms Grauer said.

The Chainalysis report also revealed that this year's Crypto Adoption Index is being majourly dominated by two countries named as Turkey (ranked 12) and Morocco (20), the Chainalysis report revealed.'These lower-middle-income countries have seen the greatest recovery in grassroots crypto adoption over the last year,' the research found. The report said thatlower-middle-income countries “, the report indicates that crypto can be a very vital part of the near future.Cryptocurrencies can aid developing economies in bridging the digital divide and promoting financial inclusion, according to Brock Pierce, a billionaire pioneer in blockchain technology. He made this statement during a panel discussion at a 2021 future-of-finance event hosted by the Middle East Futures forum.

Top 10 countries for being the base of crypto adoption in 2023 -

1. India
2. Nigeria
3. Vietnam
4. United States
5. Ukraine
6. Philippines
7. Indonesia
8. Pakistan
9. Brazil
10. Thailand