India has claimed the top spot in Chainalysis' Global Crypto Adoption Index for the third year in a row. The 2025 report, released September 2, shows India ranking first in every measured category, including retail, institutional, and decentralized finance activity. The United States placed second, with Pakistan in third.
This dominance persists despite a 30% tax on crypto profits and a 1% tax deducted at source on every transaction-a policy that would typically suppress market activity.
India's strong performance is a key driver of regional growth. The broader Asia-Pacific area saw a 69% year-over-year increase in on-chain value received, totaling $2.36 trillion by June 2025. India's contribution of approximately $338 billion makes it a primary engine for this growth alongside Pakistan and Vietnam.
The country's crypto journey has not been linear. India dropped to 21st place in the 2022 index before rebounding to first in 2023, a position it has held since. Despite the stringent tax regime, crypto activity in India declined only 6% year-over-year, far less than the global average drop of 20%.
Organizations like the Bharat Web3 Association are working to integrate digital assets into everyday finance, including remittances, by leveraging widespread payment systems like the Unified Payments Interface (UPI). For institutional investors, India's top ranking in the institutional service value sub-index signals significant capital flows into the sector through local channels.