Chainalysis ranks India as top country for crypto adoption for third year running

India has claimed the number one spot in Chainalysis’ Global Crypto Adoption Index for the third consecutive year, topping every single sub-category in the 2025 edition released on September 2. The US came in second, with Pakistan rounding out the top three.

Here’s the thing about India’s dominance: it’s happening despite a regulatory environment that seems almost designed to discourage crypto participation. A 30% tax on crypto gains and a 1% tax deducted at source on every transaction would be enough to kill enthusiasm in most markets. In India, it barely made a dent.

India swept every category

The 2025 index measures adoption across four sub-indices: retail centralized service value received, overall centralized service value, DeFi value received, and institutional service value. India finished first in all four.

The broader Asia-Pacific region saw a 69% year-over-year increase in on-chain value received, reaching $2.36 trillion by June 2025. India contributed roughly $338 billion to that regional volume, making it one of the primary engines driving APAC’s crypto growth alongside Pakistan and Vietnam.

For context, India’s crypto journey hasn’t been a straight line upward. The country plummeted to 21st place in the 2022 index before rebounding to first in 2023 and holding that position through 2024 and now 2025.

Thriving under hostile tax policy

Organizations like the Bharat Web3 Association have been working to normalize digital asset usage for everyday purposes, particularly remittances and routine trading. The integration with local payment infrastructure like UPI, India’s widely used unified payments interface, has helped bridge the gap between traditional finance and crypto.

India experienced only a 6% year-over-year decline in crypto activity during a period when the global average decline hit 20%. Peer-to-peer trading and local exchanges have absorbed much of the activity that heavier regulation might have pushed out entirely.

What this means for investors

The APAC region’s $2.36 trillion in on-chain value received represents a pool of activity that international exchanges, DeFi protocols, and infrastructure providers can’t afford to ignore. India’s $338 billion contribution to that total makes it the anchor market in the region.

Institutional investors should pay particular attention to India’s top ranking in the institutional service value sub-index, signaling that serious capital is flowing into crypto through Indian channels. The Bharat Web3 Association and similar organizations pushing for deeper blockchain integration into India’s existing financial rails could be laying the groundwork for the next phase of growth.

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