India and Singapore ahead among the crypto markets

The region that includes Central Asia, Southern Asia, and Oceania (CSAO) is confirmed as one of the most dynamic crypto markets globally: with India and Singapore on the podium according to Chainanalysis. Between July 2023 and June 2024, the area recorded an inflow of over 750 billion dollars in crypto-assets, representing 16.6% of the global value received.

Chainanalysis Report: in Asia, India and Singapore are ahead in the crypto markets

According to Chainalysis, CSAO is the third largest region in the world for cryptocurrency adoption, surpassed only by North America and Western Europe. Crypto adoption in this area is particularly interesting due to the push from centralized exchanges and high-value transfers, which suggest extensive professional and institutional activity.

India leads the adoption of crypto

Among the most significant countries in the region, India stands out as the global leader in cryptocurrency adoption. Despite an evolving regulatory environment and high taxes, such as a 30% tax on crypto gains and a 1% tax on every transaction (known as TDS), the crypto market in India continues to grow. 

These regulations have driven many Indian investors to turn to less stringent international exchange platforms, but the growth trend of the sector has not been significantly slowed down.

In December 2023, the Financial Intelligence Unit of India (FIU) blocked access to nine offshore crypto exchanges, including Binance, Kraken, and KuCoin, for alleged violation of anti-money laundering laws. However, many Indian users continued to access these platforms through previously downloaded apps, and the impact of this measure proved to be temporary. 

In response, local experts, such as Vikram Rangala, executive director of ZebPay, have emphasized the importance of greater regulatory clarity, which could foster innovation and attract investors back to local platforms.

Recently, a positive signal arrived with the lifting of the block on Binance, thanks to its registration as a reporting entity. This development, although recent, suggests that the Indian crypto market could evolve further in the coming years, with adoption continuing to grow, fueled also by the constant interaction between industry and regulators.

Singapore: a hub for crypto payments

If India is the leader in grassroots crypto adoption, Singapore is emerging as a major hub for crypto payments. Until recently, Singapore’s crypto market was primarily dominated by institutional activities, but in recent years there has been a significant shift, with substantial growth in investments from retail and professional investors.

One of the most interesting developments concerns the adoption of crypto as a payment method. Companies like dtcpay allow merchants to accept payments in cryptocurrencies, and tech giants like Grab have started to allow their users to top up digital wallets using crypto such as Bitcoin, Ether, and local stablecoins like XSGD. 

These advancements indicate a growing acceptance of crypto in the daily lives of citizens, a promising signal in a market already highly efficient in traditional fiat payments.

The volume of crypto payments received by merchants in Singapore reached nearly 1 billion dollars in the second quarter of 2024, a significant increase compared to previous years. This trend could indicate that crypto is gaining greater adoption among the general population, moving beyond the initial institutional use.

Regulation and growth in Singapore

Regulation has played a crucial role in the expansion of the crypto market in Singapore. In 2023, the Monetary Authority of Singapore (MAS) introduced a regulatory framework for stablecoins, which establishes strict requirements for issuers and imposes segregation and custody procedures for customer assets. 

This has helped create a safer and more reliable environment for retail and institutional investors.

Furthermore, the adoption of the local stablecoin XSGD is constantly increasing, especially among small investors. More than 75% of the value transferred in XSGD involves transactions below 1 million dollars, with 25% of transactions below 10,000 dollars. 

This highlights a solid base of retail activity, in contrast to other stablecoins, such as those pegged to the US dollar, which are primarily used for bull transactions of large size.

Indonesia: after India and Singapore a growing market for Chainanalysis

While India and Singapore are evident leaders, Indonesia is also playing a significant role in the CSOA region. 

With an influx of over 157 billion dollars in cryptocurrencies during the study period, the country ranks third in the world for crypto adoption. Indonesia represents one of the main hubs for crypto traders, with many local investors seeing opportunities in trading digital assets.

The prospects for the crypto market in Indonesia are promising, thanks to a growing awareness and participation from investors, both retail and institutional. 

The dynamics of the Indonesian crypto market, combined with the growing interest from regulatory authorities, suggest that Indonesia will continue to be a significant player in the Asian crypto scene.

Conclusions: the crypto vision of Chainanalysis for India and Singapore

The crypto market in the Central, Southern Asia, and Oceania region is experiencing rapid and dynamic growth. According to Chainanalysis, India leads global adoption, while Singapore is emerging as a hub for crypto payments, and Indonesia is establishing itself as a significant market for traders.

With greater regulatory clarity and a growing interest from institutional and retail investors, the entire CSAO region is set to remain one of the main centers for innovation and adoption of cryptocurrencies.