India is the top cryptocurrency market in the world and difficulties around tax laws in the country do not appear to have dampened the enormous demand for digital tokens, according to a report by blockchain data platform Chainalysis.
“India leads the world in grassroots adoption as measured by our Global Crypto Adoption Index, but perhaps even more impressively has become the second-largest crypto market in the world by raw estimated transaction volume, beating out several wealthier nations,” Chainalysis said in its Global Crypto Adoption Index 2023 report, which identifies countries where investors are putting the greatest share of their wealth into cryptocurrencies.
India’s emergence as a top cryptocurrency market comes despite its regulatory and tax environment that can be challenging for the industry to navigate, the report added.
“Within the last year, regulatory agencies have provided more clarity on many issues, for instance formally decreeing that its money laundering rules will apply to cryptocurrency transactions,” it said.
India taxes cryptocurrency activity at a much higher rate than most other countries.
It levies a 30 per cent tax on gains – a rate unique to crypto and higher than the country’s tax rate on other investments such as equities – and a 1 per cent tax on all transactions, also known as a tax deducted at source (TDS).
This means that crypto platforms must deduct the amount from a user’s balance at the time of the trade for it to be completed, Chainalysis added.
In this year’s Crypto Adoption Index, six of the top 10 countries are located in the Central and Southern Asia and Oceania (CSAO) region. These include India (1), Vietnam (3), the Philippines (6), Indonesia (7), Pakistan (8) and Thailand (10).
"The fact that India, the Philippines and Pakistan were all ranked among the top 10 in our 2023 Global Crypto Adoption Index bodes well for the UAE,” Kim Grauer, research director at Chainalysis, said.
“These nationalities represent a significant portion of the UAE’s expat population, and the surging popularity among people of these nations is likely to correlate with increased crypto adoption in the Emirates as well.”
There are several factors that are driving the adoption of cryptocurrencies in different CSAO countries, Chainalysis noted. This has led to different usage for different types of cryptocurrency services.
While centralised exchanges take up the majority of web traffic in all of these countries, Chainalysis said there are some country-specific trends in this year’s research.
For example, the Philippines has a huge share of crypto-related web traffic going to gaming and gambling platforms at 19.9 per cent while Vietnam is next at just 10.8 per cent.
Meanwhile, countries such as Pakistan and Vietnam have a higher share of activity happening on P2P exchanges, which are more commonly used in emerging markets or in countries with stricter capital controls.
“From being a hedge against hyperinflation as in Pakistan, to potentially serving as an additional source of income as in the Philippines, the variation in grassroots utilisation demonstrates just how versatile cryptocurrencies are and how effectively they can be adapted to the context of a particular nation,” Ms Grauer said.
The Mena region is home to two of the top 20 countries in this year’s Crypto Adoption Index: Turkey (ranked 12) and Morocco (20), the Chainalysis report revealed.
Many of the top countries in this year’s Crypto Adoption Index are in the lower middle income category, which represents 40 per cent of the world’s population.
"These lower middle income countries have seen the greatest recovery in grassroots crypto adoption over the last year," the research found.
If lower middle income countries “are the future, then the data indicates that crypto is going to be a big part of that future", it said.
Cryptocurrencies can help developing economies bridge the digital divide and boost financial inclusion, billionaire blockchain technology pioneer Brock Pierce told a panel at a future-of-finance event hosted by the Middle East Futures forum in 2021.
“Results are unbelievable … they managed to achieve what was my highest expectation. The data shows the courageous move has worked … the latest technologies or innovations can address the global problem of under or unbanked population,” Mr Pierce said.
Globally, about 1.7 billion adults remain unbanked with no account at a financial institution or through a mobile money provider, a World Bank report released in 2017 showed.
Nearly half of them live in seven developing economies – Bangladesh, China, India, Indonesia, Mexico, Nigeria and Pakistan – and almost 56 per cent of all unbanked adults are women.
However, financial access rates have increased since 2011, when the World Bank began documenting them through the Global Findex database.
Bitcoin has been caught up in the general risk-off attitude on worries about high inflation and US Federal Reserve interest rate hikes.
The crypto market plunged in May and June but gained around 17 per cent in July
On Tuesday, Bitcoin rose almost 4 per cent to $26,141, after falling below $25,000 for the first time in three months on Monday. It is, however, still a far cry from its all-time high of $69,000 in November last year.
Top 10 countries for grassroots crypto adoption in 2023
- India
- Nigeria
- Vietnam
- United States
- Ukraine
- Philippines
- Indonesia
- Pakistan
- Brazil
- Thailand
Source: Chainalysis
UAE currency: the story behind the money in your pockets
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3ESingle%20front-axle%20electric%20motor%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E218hp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E330Nm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%3Cbr%3E%3Cstrong%3EMax%20touring%20range%3A%20%3C%2Fstrong%3E402km%20(claimed)%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh215%2C000%20(estimate)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ESeptember%3C%2Fp%3E%0A
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Results:
5pm: Conditions (PA) Dh80,000 1,400m | Winner: AF Tahoonah, Richard Mullen (jockey), Ernst Oertel (trainer)
5.30pm: Handicap (TB) Dh90,000 1,400m | Winner: Ajwad, Gerald Avranche, Rashed Bouresly
6pm: Maiden (PA) Dh80,000 1,600m | Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinel
6.30pm: Handicap (PA) Dh80,000 1,600m | Winner: Duc De Faust, Szczepan Mazur, Younis Al Kalbani
7pm: Wathba Stallions Cup (PA) Dh70,000 2,200m | Winner: Shareef KB, Fabrice Veron, Ernst Oertel
7.30pm: Handicap (PA) Dh90,000 1,500m | Winner: Bainoona, Pat Cosgrave, Eric Lemartinel
Abu Dhabi GP starting grid
1 Lewis Hamilton (Mercedes)
2 Valtteri Bottas (Mercedes)
3 Sebastian Vettel (Ferrari)
4 Kimi Raikkonen (Ferrari)
5 Daniel Ricciardo (Red Bull)
6 Max Verstappen (Red Bull)
7 Romain Grosjean (Haas)
8 Charles Leclerc (Sauber)
9 Esteban Ocon (Force India)
10 Nico Hulkenberg (Renault)
11 Carlos Sainz (Renault)
12 Marcus Ericsson (Sauber)
13 Kevin Magnussen (Haas)
14 Sergio Perez (Force India)
15 Fernando Alonso (McLaren)
16 Brendon Hartley (Toro Rosso)
17 Pierre Gasly (Toro Rosso)
18 Stoffe Vandoorne (McLaren)
19 Sergey Sirotkin (Williams)
20 Lance Stroll (Williams)
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
DUBAI WORLD CUP RACE CARD
6.30pm Meydan Classic Trial US$100,000 (Turf) 1,400m
7.05pm Handicap $135,000 (T) 1,400m
7.40pm UAE 2000 Guineas Group Three $250,000 (Dirt) 1,600m
8.15pm Dubai Sprint Listed Handicap $175,000 (T) 1,200m
8.50pm Al Maktoum Challenge Round-2 Group Two $450,000 (D) 1,900m
9.25pm Handicap $135,000 (T) 1,800m
10pm Handicap $135,000 (T) 1,400m
The National selections
6.30pm Well Of Wisdom
7.05pm Summrghand
7.40pm Laser Show
8.15pm Angel Alexander
8.50pm Benbatl
9.25pm Art Du Val
10pm: Beyond Reason
UAE currency: the story behind the money in your pockets
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
