The Indian government’s restrictive approach towards the crypto sector has hindered, but has not been able to completely thwart, its expansion into the tech-friendly subcontinent. In a new report, KuCoin crypto exchange has claimed that India currently has over 115 million crypto investors, which is 15% of its vast population. Most of the Indian crypto investors are in the age group of 18 to 60 years. At this time, India does not allow the use of crypto assets as a payment option. However, trading, buying or selling crypto assets in India is permitted under a tax regime that was introduced earlier this year.
The Indian crypto market is expected to reach a valuation of $241 million (approximately Rs 1,924 crore) by 2030, KuCoin said in his report Titled Cryptoverse Report India.
The report claims that another 10 percent of Indian adults are crypto-curious consumers who plan to invest in crypto in the coming six months.
“The lack of adequate knowledge of the crypto market is reflected by 41% of respondents who say they are not sure what type of crypto investment products to choose, 37 percent have difficulty managing the risk of their portfolios, and 27% have trouble predicting market directions and the value of crypto. Meanwhile, 21 percent are unclear about how crypto works,” the report said.
Another major factor that is holding people back from investing in crypto is the regulatory uncertainty prevailing in the country, as well as the fear of losing their funds to hacking attacks.
“33 percent report that government regulation is a concern when considering investing in crypto. The safety of investing in crypto is also a concern for many, as 26% worry about being a threat to hackers, And 23% fear they may not get their money back in case of security incidents,” the report said.
Out of 2042 Indian adults surveyed by KuCoin, 56 percent of investors believe that crypto is the future of finance and 54 percent believe they will achieve high returns on long-term investments.
Among young Indians, 24 percent of investors are working in this sector because of the crypto hype.
Unfortunately, India did not make it to the list of countries that have taken crypto-friendly measures to contribute to the growth of this emerging industry.
In the latest ‘Worldwide Crypto Readiness Report’, ForexSuggestion claimed that Hong Kong, followed by the US and Switzerland are the top three most crypto-ready nations in the world respectively.
Indian crypto traders are struggling to see profits after paying 30 per cent tax on transactions of virtual digital assets. This rule went live in April.
From July, Indians have also started seeing a one percent tax deduction on every crypto transaction. This essentially means that one percent TDS is being levied on every purchase and deposit of crypto assets, adding to the pressure on investors.
Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.
