The Central and Southern Asia and Oceania (CSAO) region has seen an impressive $750 billion influx in cryptocurrency between July 2023 and June 2024, establishing itself as one of the largest crypto markets in the world.
As per Chainalysis’ 2024 Geography of Cryptocurrency report, this region accounts for 16.6% of the total global crypto value received, ranking just behind North America and Western Europe.
Leading the Way: India’s Crypto Adoption
India continues to dominate the crypto landscape, securing the top spot on Chainalysis’ Global Adoption Index. During the same report period, India received over $157 billion in crypto inflows, placing it second within the CSAO region.
Despite facing various regulatory hurdles like a 30% capital gains tax and a 1% transaction tax, India’s crypto engagement remains robust. The Financial Intelligence Unit (FIU) took steps to block several offshore exchanges in 2023 due to non-compliance with anti-money laundering regulations. However, Indian users have discovered alternative methods to access these platforms.
A constructive dialogue between the government and the crypto industry is beginning to foster a more sustainable ecosystem. Recently, Binance’s seven-month suspension was lifted after it registered as a reporting entity in India, hinting at renewed opportunities for offshore exchanges.
This shift indicates an evolving perspective on digital asset regulations in India, signaling a move towards a more collaborative regulatory environment in the future.
Singapore: The Vanguard of Cryptocurrency Payments
Singapore has established itself as a leader in crypto payments, rapidly evolving into a major industry hub. The nation, traditionally recognized for institutional crypto activities, is witnessing an influx of both retail and professional investor participation.
The growth in crypto payments has been remarkable. In Q2 2024, the cumulative value of crypto transactions through merchant services approached $1 billion, marking a significant increase from earlier quarters.
The retail sector has experienced pronounced year-over-year growth in transaction sizes, largely due to regulatory clarity and protective measures introduced by the Monetary Authority of Singapore (MAS).
The MAS finalized its stablecoin regulatory framework in August 2023, establishing new parameters for issuers and guidelines for safeguarding customer assets. This clarity has enhanced confidence in stablecoin utilization for both retail and institutional scenarios, solidifying Singapore’s role as a frontrunner in digital asset regulation.
Indonesia: A Booming Market for Trading and DeFi
Indonesia is making headlines in the CSAO region with its extraordinary growth in cryptocurrency trading, seeing nearly 200% year-over-year expansion. As the region’s largest crypto market by total value received, it attracts investors eager for substantial yields.
Significantly, about a third of the total value received by domestic exchanges comes from transactions ranging between $10,000 and $1 million, highlighting a robust professional trading environment.
This surge in trading activity is largely fueled by Indonesia’s youthful demographic, with Millennials and Gen Z making up over 50% of the investor community. Furthermore, recent regulatory measures limiting access to traditional markets have nudged many Indonesians towards alternative assets like cryptocurrency.
Beyond trading, Indonesia is becoming a vibrant center for decentralized finance (DeFi) and decentralized exchanges (DEX). The country’s Web3 market is flourishing, with participation in yield farming, staking, and various DeFi activities surpassing global averages.
The emergence of the “crypto degen” community in Indonesia—comprised of young, digitally savvy investors pursuing high-risk, high-reward DeFi ventures—has been instrumental in driving this upward trend.
