Increasing Crypto Adoption in Central Asia; India & Pakistan Seems a Bit Slow

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on September 23, 2022 6:37 AM

    Updated on January 9, 2023 12:50 PM

    Members of the area include Vietnam, India, Philippines, Pakistan, Thailand, and seven of the top 20 nations in the index tracking the global prevalence of virtual assets.
    Increasing Crypto Adoption in Central Asia; India & Pakistan Seems a Bit Slow


    CSAO Consist of Central & South Asia

    Chainalysis examines the state of the blockchain and cryptocurrency industries in Asia in depth and discovers that the development trend is unstoppable.

    The CSAO is the third-largest cryptocurrency market and comprises Central and South Asia as well as Oceania.

    From July 2021 to June 2022, investors in CSAO nations earned $932 billion in bitcoin value.

    Seven of the top 20 countries in the index measuring the prevalence of virtual assets in the world are members of the CSAO, including Vietnam, which comes in first, closely followed by the Philippines, India, which comes in fourth, Pakistan, which comes in sixth, and Thailand, which comes in eighth. Nepal comes in sixteenth place, and Indonesia comes in last, rounding out this small group of performing nations.

    India & Pakistan Still Need to Boost Up

    India is leading the unweighted cryptocurrency activity, verified for the second year in a row and receiving an incredible $172 billion in bitcoin value from July 2021 to June 2022, compared to, for instance, Thailand, Vietnam, Australia, and Singapore, which each stand at over $100 billion.

    According to a 2022 Chainalysis research, India, which had had the second-largest crypto-loving population in the globe, has seen its ranking in terms of crypto adoption fall to fourth place year over year. Pakistan, which is next door, dropped three spots during the same time period to become the nation with the sixth-highest rate of cryptocurrency adoption in the world.

    The majority of transactions in India use wrapped or ETH, while the majority of transactions in Pakistan use stablecoins as bearers of value for remittances. For use in decentralised apps and NFT marketplaces, one ETH can be converted in a 1:1 ratio to an ERC-20 token like wETH.

    Blockchain startups in the remittance sector, with a combined value of over $40 billion, are starting to upend the market in both nations. Recently, the Pakistani government joined together with AliPay to accept money transfers from Malaysia.

    India's ranking fell this year as a result of two new taxes.

    The government's 30% tax on cryptocurrency earnings starting in April 2022 has a significant negative impact on Indian bitcoin exchanges. In the days that followed, local news sources predicted a 15–55 percent decline in trading volumes. 40% less people visited cryptocurrency exchange websites.

    However, Pakistan's government has not yet made a decision about the legitimacy of cryptocurrencies. In January 2022, the government and central bank advocated an outright ban on cryptocurrency. The administration then established three committees to aid in putting policies into effect.

    The country's inclusion on the Financial Action Task Force's grey list, which restricts the country's access to financial help, complicates the situation.