Markets such as central and southern Asia have witnessed a dramatic rise in cryptocurrency transactions, according to a report from blockchain analytics firm Chainalysis.
New York-headquartered Chainalysis helps government agencies, cryptocurrency businesses, and financial institutions to engage confidently with cryptocurrency, as well as publishing research on the effect the currency has on markets.
The report finds that India, Vietnam, and Pakistan are helping to lead the expansion of cryptocurrency markets in central and southern Asia. Between July 2020 and June 2021, the Central, Southern Asia and Oceania (CSAO) region oversaw transactions worth more than $572.5 billion.
This has made the CSAO region the world's fourth-largest cryptocurrency market by transaction value.
The report suggests that India could soon become a hub for cryptocurrency-related investments in the CSAO region as soon as the government provides clearer regulatory guidelines.
India's market grew 641 percent over the past year, and Pakistan's grew 711 percent, the report claims using a metric that estimates the total cryptocurrency received by a country.
Although India's crypto market is predominated by large institutions, in Pakistan and Vietnam the professional traders are driving the crypto markets.
Crypto transactions between $10,000 and $1 million make up the majority of deals in Pakistan and Vietnam, with transactions being made by professional crypto investors.
Joel John, a principal at India-based cryptocurrency investments firm LedgerPrime, has been quoted in the report as saying that many India investors who previously focused on pouring funds into property have turned to crypto after returns on property decreased.
9 February 2021, 09:01 GMT
"There used to be a certain amount of stigma. Now, crypto has become the cool place to be," John said.
India has seen a 59 percent share of activity taking place on decentralised finance platforms with Pakistan at 33 percent, the report said.