New York-based blockchain data analytics firm Chainalysis shared insights on its crypto adoption index for 2023 on Tuesday, September 12, 2023, revealing the top countries leading the charge in terms of grassroots cryptocurrency adoption.

Leading Countries In Terms Of Grassroot Cryptocurrency Adoption

Following an excerpt released by the blockchain data analytics firm Chainalysis on September 12, 2023, based on a variety of parameters to determine grassroots cryptocurrency adoption, India, Nigeria, and Vietnam have secured the top three positions respectively to become the leading countries in grassroots cryptocurrency adoption in 2023.

According to the index, the lower-middle-income (LMI) countries were identified to be leading the way in grassroots crypto adoption over the past 12 months.

India takes the lead, with Nigeria and Vietnam securing the second and third position respectively, followed by the United States, Ukraine, Philippines, Indonesia, Pakistan, Brazil, and Thailand. 

The excerpt was released after the crypto firm analyzed the data of 154 countries across five sub-indexes around the world, which includes on-chain crypto value and retail value received at both centralized exchanges and DeFi protocols, and peer-to-peer exchange trading volume.

“We combine on-chain data and real-world data to measure which countries are leading the world in grassroots crypto adoption,” the crypto firm stated.

These rankings were also determined by each country’s geometric mean in all five areas, cryptocurrency purchasing power, and population strength. However, the blockchain data analytics firm is expected to release a fully detailed report in October 2023.

So far, the Central & Southern Asia and Oceania (CSAO) region has shown dominance in grassroots crypto adoption. Six of the top 10 leading countries in grassroots crypto adoption in 2023 are from this region.

The region also ranks third in raw transaction volume contributing to about 20% of worldwide crypto activity, firmly following North America and Central, and Northern & Western Europe (CNWE).

India Leads Global Crypto Adoption Despite Tax Regime

India has shown increased interest and involvement in the world of cryptocurrencies in 2023. The country has taken the lead in terms of global crypto adoption and transaction volume despite its latest Tax regime.

Earlier this year, the country inflicted a 30% tax on all crypto gains made by trading, and a 1% tax deduction at source (TDS) applied on all crypto transactions. This is to say, all crypto platforms are obliged to deduct 1% of the user’s balance once any transaction is made.

The country has also exceeded other major economies in the world to become the second-largest crypto market by raw estimated transaction volume globally.

Due to this rising interest in cryptocurrency in the country, Governor of the Reserve Bank of India Shaktikanta Das previously said all cryptocurrencies should be banned in the country and that it can just be called “gambling” when he was asked about his opinion on cryptocurrencies.

However, during the recently hosted G20 summit held in the country in August 2023, India’s Prime Minister Narendra Modi recommended a complete and broader framework for cryptocurrencies in the country.

“At the same time, the rules, regulations, and framework around it should not belong to one country or a group of countries. So not only crypto, but all emerging technologies need a global framework and regulations,” Prime Minister Modi stated.