India Ranks Second in Global Transaction Volume Despite Tax Law Challenges India has claimed the second-largest position in the global crypto market, surpassing the
UK, Turkey, and Russia in raw transaction volume.
This achievement
is notable given that it comes despite challenges posed by India's anti-crypto regulatory and tax environment, a recent report from blockchain intelligence firm Chainalysis said.
In the report,
Chainalysis revealed that India leads the world in grassroots crypto adoption, as indicated by its Global Crypto Adoption Index. Over the period from July 2022 to June 2023, c
ryptocurrency transaction volumes in India reached nearly $269 billion.
Notably, this growth
has occurred in the midst of a tax landscape that can be demanding for the crypto industry, with
a 30% tax on gains and a 1% tax on all crypto transactions. However,
Chainalysis suggests that the inconsistent application of the transaction tax might hinder local exchanges' ability to compete effectively.
Despite these regulatory and tax challenges,
the demand for cryptocurrency in India remains robust. Chainalysis emphasizes that as long as this demand persists, cryptocurrency will maintain a significant presence
in the world's second-most populous country.
