The Central and Southern Asia and Oceania (CSAO) region has emerged as a significant player in the global crypto market, with $750 billion in crypto inflows between July 2023 and June 2024. This represents 16.6% of the global crypto value received, ranking the region behind only North America and Western Europe.
India, in particular, has maintained its lead in crypto adoption within the CSAO region. Despite facing regulatory challenges such as a 30% capital gains tax and a 1% transaction tax, India saw inflows of over $157 billion during the specified period. The country’s crypto activity has persisted even amidst regulatory crackdowns on offshore exchanges, with Indian users finding alternative ways to access these platforms.
Regulatory engagement between the Indian government and the crypto industry has started to pave the way for a more sustainable ecosystem. The recent lifting of Binance’s seven-month ban after registering as a reporting entity in India signals potential opportunities for offshore exchanges to re-enter the market, reflecting India’s evolving stance on digital assets.
Singapore, on the other hand, has become a trailblazer in crypto payments and is quickly establishing itself as a hub for the industry. The country has seen a surge in retail and professional investor participation in the crypto space, with the total value of crypto transactions through merchant services nearing $1 billion in the second quarter of 2024. Regulatory clarity and consumer protection initiatives by the Monetary Authority of Singapore (MAS) have driven growth in transaction sizes, especially in the retail sector.
In Indonesia, there has been explosive growth in cryptocurrency trading, with year-over-year growth reaching nearly 200%. The country is the largest crypto market in the CSAO region in terms of total value received, attracting investors looking for rapid gains. Indonesia’s young population, comprising mostly Millennials and Gen Z, has contributed to the substantial professional trading activity in the country. Additionally, Indonesia has become a hotspot for decentralized finance (DeFi) and decentralized exchanges (DEX), with a growing Web3 market and high participation in DeFi activities like yield farming and staking.
Overall, the CSAO region is making significant strides in the crypto space, with countries like India, Singapore, and Indonesia leading the way in adoption, regulatory clarity, and trading activity. As these countries continue to embrace digital assets, the region is poised to play a key role in the global crypto market.