Regulation vs Progress: What’s Fueling India Crypto Adoption Ranking

For the third year in row, India has ranked #1 in global crypto adoption, according to the TRM Labs 2025 Global Adoption Report. The country has held this position since 2023, outpacing major economies like the U.S., Vietnam, and Japan. Before this, India Crypto Adoption has secured 1st spot in Chainalysis’ Crypto-adoption report of 2025 too.

Source: TRM Labs

But how did the country manage to stay on the top despite heavy taxes and uncertain regulations ?

Well, the India's growth story is not just numbers, it is a result of growing-native population, expanding Web3 innovation, and a strong belief in crypto as a next big wealth engine for millions.

Inside TRM Labs’ 2025 Report: Major Findings

Despite ranking, the report also unveils many key elements from the perspective of crypto-behaviour aroung the globe, including development and interests. Let’s find crux in the below highlighted points:

• Worldwide Shift Toward On-Chain Finance: Global crypto adoption rose 52% year-on-year, driven by DeFi lending, and real-world tokenization. Around 18% of activity now involves banks and regulated fintechs.

• Stablecoins Power Global Liquidity: Stablecoins emerged as the backbone of digital assets activity in 2025, making up 30% of crypto-transactions hitting $4 trillion by August 2025, up 83% YoY, showing their growing role in payments, remittances, and on-chain liquidity.

• $300 Billion in Regional Transactions: South Asia, led by India, saw an 80% surge in crypto activity, surpassing $300 billion in transactions. This growth was powered by remittances, gaming economies, and digital asset savings.

• Asia-Pacific Boom: The Asia-Pacific region’s on-chain value transfer jumped 69% YoY, from $1.4 trillion to $2.36 trillion, reflecting emerging economies' faster embracement.

• Rising Developer Momentum: Blockchain developer participation across Asia increased 35%, with India, Vietnam, and South Korea ranking among the top contributors to smart contract innovation and DeFi infrastructure.

What’s Powering India’s Crypto Dominance

India’s Leadership in worldwide adoption is built on innovation, accessibility, and scale. Several key developments have accelerated its position.

Mass adoption through Telecom & Fintech: Jio’s partnership with Aptos introduced blockchain-based loyalty rewards to 500 million users, one of the largest Web3 rollouts globally.

Institutional Return: Coinbase re-entered the Indian market after Binance, KuCoin and Bybit, through a CoinDCX partnership, investing at a $2.45 billion.

Developer-Led Growth: With Polygon, Shardeum, and Zetachain emerging as global players, India's fast becoming the innovation hub of decentralized technology.

National Advancements: Authorities are working on the crypto-regulations through COINS Act and mandating FIU registration for offshore platforms, hinting a welcoming mindset.

Balancing Regulation and Innovation

Despite a 30% tax on profits and 1% TDS on trades, India’s crypto-activity continues to grow. The government’s approach has shifted toward structured regulation rather than restriction. Where Finance Minister Nirmala Sitharaman recently suggested exploring an INR-backed stablecoin, Union Minister Jitendra Singh clearly expressed the government's interest in AI and blockchain-driven governance .

This balance, “ regulate, not ban ” , has made-India a model for emerging crypto-economies.