India has been ranked first in grassroots crypto adoption, even amid a tough regulatory environment, according to Chainalysis’ 2023 Global Crypto Adoption Index. 

The country ranked first in four parameters including centralized service value received, retail centralised service value received, DeFi value received and Retail DeFi value received. Last year India stood fourth, based on the report.

The report combines on-chain data and real-world data to measure which countries are leading the world in grassroots crypto adoption. Grassroots crypto adoption isn’t about which countries have the highest raw transaction volumes, Instead, it’s the countries where average, everyday people are embracing crypto the most, the report explains.

Nigeria ranked second in the index, followed by Vietnam, United States and Ukraine. The report also said that low-income countries saw a dramatic uptick in crypto adoption following a slump in late 2022, spurred by the collapse of the FTX.

This comes even as crypto trading and investing in the country has subdued due to taxation rules introduced by the government. With 30 per cent tax on gains, India has also introduced 1 per cent TDS on crypto trades, thus harming the trade volumes. However, India is also advocating for worldwide crypto legislation, most recently at the G20 Summit hosted by the country.