The region that includes Central Asia, South Asia and Oceania (CSAO) has been identified as one of the most dynamic crypto markets in the world, with India and Singapore topping the podium, according to ChainAnalysis. Between July 2023 and June 2024, the region recorded more than $750 billion in crypto asset inflows, representing 16.6% of the global value received.
Chain Analysis Report: In Asia, India and Singapore are ahead in the crypto market
According to Chainalies, CSAO is the region with the third highest cryptocurrency adoption in the world, surpassed only by North America and Western Europe. The adoption of cryptocurrencies in this area is particularly interesting, driven by centralized exchanges and high-value transfers, suggesting extensive professional and institutional activity.
India leads the adoption of cryptocurrencies
Among the most important countries in the region, India stands out as a global leader in cryptocurrency adoption. Despite the evolving regulatory environment and high taxes such as 30% tax on cryptocurrency profits and 1% tax on all transactions (known as TDS), the Indian cryptocurrency market continues to grow .
Although these regulations have led many Indian investors to turn to less stringent international exchange platforms, the sector's growth trend has not slowed significantly.
In December 2023, India's Financial Intelligence Unit (FIU) blocked access to nine offshore virtual currency exchanges, including Binance, Kraken, and KuCoin, for suspected violations of anti-money laundering laws. However, the impact of this measure proved to be temporary, as many users in India continue to access these platforms through previously downloaded apps.
In response, local experts such as Vikram Rangala, executive director of ZebPay, emphasized the importance of regulatory clarity that can foster innovation and attract investors back to local platforms.
Recently, the block on Binance was lifted and a positive signal was received thanks to Binance being registered as a reporting entity. Although this move is recent, it suggests that the Indian cryptocurrency market may evolve further in the coming years, with continued interaction between the industry and regulators also driving adoption.
Singapore: Cryptocurrency payments hub
If India is a leader in grassroots cryptocurrency adoption, Singapore is emerging as a major hub for cryptocurrency payments. Until recently, Singapore's cryptocurrency market was primarily dominated by institutional investor activity, but recent years have seen a significant shift, with a significant increase in investment from retail and professional investors. Masu.
One of the most interesting developments concerns the adoption of cryptocurrencies as a payment method. Companies like dtcpay allow merchants to accept payments in cryptocurrencies, and tech giants like Grab allow users to use crypto such as Bitcoin, Ether, and local stablecoins like XSGD. We are starting to make it possible to top up your digital wallet using the following methods:
These advances demonstrate the growing acceptance of cryptocurrencies in people's daily lives, a promising sign in a market where traditional fiat payments are already highly efficient.
The amount of cryptocurrency payments received by merchants in Singapore reached nearly $1 billion in the second quarter of 2024, a significant increase compared to the previous year. This trend may indicate that cryptocurrencies are becoming more widespread among the general population, beyond their initial institutional use.
Regulation and growth in Singapore
Regulation plays an important role in the expansion of Singapore's crypto market. In 2023, the Monetary Authority of Singapore (MAS) introduced a regulatory framework for stablecoins, setting strict requirements for issuers and imposing segregation and custody procedures for customer assets.
This has created a safer and more reliable environment for individual and institutional investors.
Moreover, the adoption of local stablecoin XSGD continues to increase, especially among small investors. More than 75% of the amounts transferred with XSGD are transactions of less than $1 million, and 25% of transactions are less than $10,000.
This highlights a solid base of retail activity, in contrast to other stablecoins pegged to the US dollar, which are primarily used for large bullish trades.
Indonesia: Chainanarise’s growth market after India and Singapore
While India and Singapore are the clear leaders, Indonesia also plays an important role in the CSOA region.
With over $157 billion in crypto inflows during the study period, the country ranks third in the world in cryptocurrency adoption. Indonesia is one of the major hubs for crypto traders, with many local investors finding opportunities to trade digital assets.
The outlook for the Indonesian cryptocurrency market is promising thanks to the growing awareness and participation of investors, both retail and institutional.
The dynamics of Indonesia's crypto market and growing interest from regulators suggest that Indonesia will continue to be an important player in Asia's crypto scene.
Conclusion: Chainanaracy’s Cryptocurrency Vision in India and Singapore
The crypto market in the Central, South Asia and Oceania regions is experiencing rapid and dynamic growth. While India is leading global adoption, Singapore is emerging as a hub for crypto payments and Indonesia is establishing itself as a key market for traders, according to Chainanalysis.
With clearer regulations and growing interest from institutional and retail investors, the entire CSAO region is expected to continue to be one of the leading centers for cryptocurrency innovation and adoption.
