Indians are favoring investing in cryptocurrencies as data has shown that crypto investments in the country have surged significantly in the past year.
According to our recent report, data from Chainalysis has shown that crypto investments in India have grown approximately 900%. The volume of Indian cryptocurrency trades which was valued at $200 million 12 months ago, is currently valued at $40 billion.
Furthermore, the report also noted that though Indians most commonly invest in gold, the 18-35 demographic of India were showing more interest in investing in cryptocurrencies, as the investment process is way simpler compared to investing in the precious metal.
The phenomenal surge in crypto investments is commendable for India, especially in light of all the uncertainty surrounding the regulation of cryptocurrencies in the country.
It’s not news that the Indian government along with the Indian Reserve Bank (IRB) have been going back and forth with their stances on crypto-assets. Earlier in March, it was revealed that India was to propose a major cryptocurrencies ban that would make the possession, issuance, mining, trading, and transferring of crypto-assets illegal in India. If the bill sees the light of day, India will become the first country to make being involved in cryptocurrencies a crime.
Also, In 2018, the RBI banned local banks from relating with cryptocurrency exchanges and facilitating crypto-trading-related transactions. Most recently though, it seems to have taken a different stance as it asked banks to resume facilitating crypto-related transactions. So far, banks have refused to follow the new directive.
Sathvik Vishwanath, the CEO, and co-founder of cryptocurrency exchange Unocoin who believes that banks taking a step back into serving crypto firms might be detrimental for investors is quoted saying:
“While RBI has clarified its stance that the banks can provide services after their due diligence, it is abruptly insane for these banks to take their foot back. These kinds of reactions also alarm the investors of cryptocurrencies for the wrong reason.”
Despite all these developments, investors are hopeful the government will come around to support cryptocurrencies in the long run.
With most countries’ governments giving mixed signals about cryptocurrency regulation, the defiant reaction from Indians to their governments’ back and forth reinforces the narrative that the country’s citizens are spearheading cryptocurrency adoption at a faster rate in Asia, than many of their counterparts.
The future of Cryptocurrencies in India seems to be promising and as residents have been chanting for months “Indians want Crypto.”