How Many Crypto Users in the World?

Cryptocurrencies continue to gain popularity around the world, providing new opportunities for investment, transactions and capital preservation. From decentralised finance to tokenised assets, cryptocurrencies are having a significant impact on many aspects of the global economy. In this article, we take a look at how the use of cryptocurrencies has spread among the world’s population, based on the latest data and research.

Total number of cryptocurrency users

The exact number of cryptocurrency users is difficult to determine due to the decentralised nature of the technology and differences in regulatory approaches between countries. However, according to data from various research agencies and analytical companies, it can be concluded that the number of users has grown significantly in recent years. According to a report by Crypto.com published in 2021, the total number of cryptocurrency users in the world has exceeded 220 million. This data shows the rapid growth of the cryptocurrency audience: while at the beginning of 2021 the number of users was estimated at around 106 million, by June this figure had already doubled.

Growth factors

The rise in cryptocurrency users can be attributed to several key factors:

• Increased institutional interest. Large investment banks, hedge funds and corporate investors began to actively include cryptocurrencies in their portfolios, which increased confidence in cryptocurrencies among retail investors.
• Developments in blockchain technology. Improvements in the technology base and the emergence of new blockchain-based applications such as decentralised finance (DeFi) and non-fungible tokens (NFT) have attracted new audiences.
• Economic instability. The instability of traditional financial systems and inflation in many countries are forcing people to look for alternative ways to preserve capital, among which cryptocurrencies look like an attractive option.

Geographical distribution

The distribution of cryptocurrency users around the world is heterogeneous. Countries with developed financial infrastructure, such as the US, South Korea and Japan, show high levels of cryptocurrency adoption. At the same time, in countries with unstable economies, such as Venezuela and Nigeria, cryptocurrencies are also gaining popularity as a means to combat inflation and restrictions on capital movement. Lawyers from Regulated United Europe have researched the cryptocurrency market and identified the following trends and patterns and we would like to highlight the countries where ordinary people use cryptocurrency the most.

Conclusion: The history and analysis of the current state of the cryptocurrency market show that interest in this innovative form of finance continues to grow. Users around the world see cryptocurrencies not only as a tool for speculation, but also as an opportunity to improve their financial transactions and provide greater financial inclusion. The number of cryptocurrency users is expected to continue to increase as blockchain technology evolves and integrates into various aspects of economic life.

Cryptocurrency ownership by country

Country	Number of cryptocurrency holders
India	94,000,000
China	59,000,000
United States	52,000,000
Brazil	26,000,000
Vietnam	21,000,000
Pakistan	16,000,000
Philippines	16,000,000
Nigeria	13,000,000
Indonesia	12,000,000
Iran	12,000,000
Russia	9,000,000
Mexico	8,000,000
Thailand	7,000,000
South Africa	6,000,000

Countries with the highest value of cryptoassets on stored exchanges

• United States
• India
• United Kingdom
• Turkey
• Russia
• Canada
• Vietnam
• Thailand
• Germany

North America – 24% of the global cryptocurrency market

North America leads the world in cryptocurrency use despite ongoing regulatory issues, while the popularity of stablecoins in the U.S. is declining.North America is the largest cryptocurrency market, valued at $1.2 trillion over the past year. Regulation will be key to the continued growth of cryptocurrency in the US.

Latin America – 7% of the global cryptocurrency market

In Latin American countries, Brazil, Argentina, Mexico and Venezuela stand out in the use of cryptocurrency. Cryptocurrency has become an important part of everyday life in many countries in the region, especially in those that have experienced currency devaluation. In Brazil, trends in cryptocurrency ownership are closer to North America and Western Europe (trading, altcoin investments).
Mexico is the second largest recipient of remittances from abroad in the world, a market estimated at $61 billion annually transferred to the country from abroad, mostly from the United States.In Argentina, demand for the USDT stablecoin is much higher than in neighbouring Latin American countries and this is almost certainly due to the currency devaluation that Argentina has faced recently.In Argentina, cryptocurrency can help residents of the country preserve their savings from the devaluation of the Argentine peso, which is a major factor in the adoption of cryptocurrency in the country, as Argentina has high inflation and there are many restrictions on the purchase of foreign currency. The popularity of cryptocurrency in Argentina in general is a testament to the unique ability of this asset class to provide relief in times of economic hardship.Like Argentina, Venezuela has faced a lot of economic challenges and suffered a major currency devaluation – cryptocurrency has helped many Venezuelans keep their savings as the local currency, the bolivar, has lost value. In the last ten years, around 25% of the population has left the country – this exodus has turned cryptocurrency transfers into a huge part of Venezuela’s economy.

Western Europe – 18% of the global cryptocurrency market

The European countries with the highest trading volume are the UK, Germany, Spain, France, Italy, France and the Netherlands.Central, Northern and Western Europe is the second largest cryptocurrency economy in the world this year, behind only North America.In the UK, consumers are focused on cryptocurrency from both a technological and investment perspective – customers of exchanges typically look to cryptocurrency for alternatives to the low returns of saving investments in banks.In the European Union, MiCA paves the way for widespread adoption of cryptocurrencies and digital assets. Its uniform, clear rules and focus on consumer protection across the EU create a safe environment that builds confidence in the market and opens the door to cryptocurrency for both individual investors and institutions.

Eastern Europe – 9% of the global cryptocurrency market

Eastern Europe is the fourth largest cryptocurrency market, with a value of $445 billion.Eastern Europe was one of three regions that saw an increase in DeFi activity over the past year.

Central and South Asia – 19% of the global cryptocurrency market

Countries with the highest value of cryptoassets on exchanges

• India
• Vietnam
• Thailand
• Indonesia
• Philippines
• Singapore

Central and South Asia is home to arguably the most dynamic and growing cryptocurrency market in the world. It is the third largest cryptocurrency market by transaction volume, just behind North America and Western Asia.However, total transaction volume does not provide a complete picture. If we factor in purchasing power and population size to measure mass adoption, the Central and South Asian cryptocurrency market dominates: six of the top ten cryptocurrency adoption countries are located in the region: India, Vietnam, the Philippines, Indonesia, Pakistan and Thailand. In addition, DeFi has gained an increased role in the region in the past year: they account for approximately 55.8 per cent of regional transaction volume, up from 35.2 per cent in the previous one-year period. Institutional adoption in the region also appears to have accelerated, with 68.8 per cent of total transaction volume accounting for transfers of $1 million or more, up from 57.6 per cent in the previous period.

India remains the leading cryptocurrency market in the World despite the challenges of tax laws. India leads the world in mass adoption of cryptocurrencies, and it has also become the second largest cryptocurrency market in the world in terms of total transaction volume. This is despite the fact that India taxes cryptocurrency activity at a much higher rate than most other countries, with a 30% tax on cryptocurrency profits and an additional 1% tax on all crypto transactions.

In the Philippines,  gaming and gambling platforms account for a huge share of cryptocurrency-related web traffic at 19.9 per cent, with Vietnam in second place at just 10.8 per cent. The Philippines has what it takes to become a leader in cryptocurrencies – the country could become the blockchain capital of Asia.

In Pakistan, high inflation and devaluation seems to be the reason why many Pakistanis have turned to cryptocurrency. Companies in Pakistan use stablecoins, such as USDT, to import goods from abroad and protect against inflation and devaluation of the local currency.

East Asia – 9% of the global cryptocurrency market

Countries with the largest value of cryptoassets on exchanges

• South Korea
• Japan
• China
• Taiwan
• Hong Kong

East Asia is the fifth most active cryptocurrency market, accounting for 8.8 per cent of global cryptocurrency activity over the past year. Its decline over the past few years has been notable: in 2020, East Asia was the leading cryptocurrency market by transaction volume, largely driven by China’s huge trading activity and its mining sector.However, a potential tailwind for East Asia comes from Hong Kong, where several crypto initiatives and industry-friendly regulations introduced last year have boosted cryptocurrency transactions and investment. The increasingly close relationship between China and Hong Kong suggests that the Chinese government is changing course on digital assets, or at least becoming more open to cryptocurrency initiatives.Hong Kong has a larger share of transaction volume for large institutional transactions of $10 million or more compared to other countries in the region, especially mainland China.In South Korea, on the other hand, 68.9% of transaction volume is related to centralised exchanges and much less to DeFi protocols. South Korea requires a certain type of bank account linked to an individual to open an account on a cryptocurrency exchange, making it difficult for institutional players to enter the cryptocurrency market, but despite this, the country is the leader in terms of cryptocurrency assets in the region.Japan, East Asia’s second-largest crypto-asset exchange, is the East Asian country whose retail and institutional transaction patterns are most in line with the global average.

Middle East and Africa – 9% of the global cryptocurrency market

Countries with the highest value of cryptoassets on exchanges

• Turkey
• UAE
• Saudi Arabia
• Iran
• Israel

The UAE has emerged as a global cryptocurrency hub by adopting an innovation-friendly regulatory framework that allows for the development of groundbreaking crypto platforms under close government oversight that ensures consumer safety. This regulatory framework has attracted many crypto entrepreneurs and enthusiasts to the region, which is perhaps why DeFi , which in many ways represents cutting-edge blockchain technology, is finding more use there.UAE regulators were early adopters of cryptocurrency: Dubai, the country’s most populous city, was the first to launch a blockchain strategy in 2016. Since then, UAE regulators have remained at the forefront of the industry. In 2018, the Abu Dhabi Global Market (ADGM) created the world’s first regulatory framework for cryptocurrency to promote innovation while protecting consumers and ensuring the UAE is positioned as a leader in the digital economy. Dubai created its own Virtual Asset Regulatory Authority (VARA) in 2022, which aims to achieve the same goals. The UAE adopted additional cryptocurrency regulations at the federal level earlier this year, allowing local regulators such as VARA the flexibility to regulate and maintain free economic zones to attract cryptocurrency innovation.
Turkey, on the other hand, is putting most of its activity into centralised exchanges as its users seem to be more focused on acquiring cryptocurrency to counteract the devaluation of the Turkish Lira. Turkey is also the fourth largest cryptocurrency transaction market in the world, receiving around $170 billion in transactions over the past year. It is second only to the United States, India and the United Kingdom.

Saudi Arabia leads the world in annual growth of cryptocurrency transactions. No country grew its cryptocurrency economy more last year than Saudi Arabia, with annual transaction growth of 12 per cent.

Nigeria is Africa’s largest crypto economy.

Countries with the largest positive growth in cryptocurrency transaction volume over the past year

• Saudi Arabia
• Vietnam
• Nigeria
• Spain
• Taiwan
• Indonesia

Crypto research conclusions

The first key finding here is that the Central and South Asian region dominates cryptocurrency adoption in the world. The mass adoption of cryptocurrencies in developed countries is declining while cryptocurrency adoption in developing countries is only increasing – a trend that will be even more pronounced over the next few years. This could be extremely promising for the future prospects of cryptocurrencies. Low- and middle-income countries are often countries on the rise, with vibrant, growing industries and populations. Many have undergone significant economic development over the past few decades and have emerged from the low-income group.