A new report shows that India has roughly 115 million crypto investors, and the country’s crypto economy is growing despite the recent market downturn, with more than half of the crypto investors surveyed planning to increase their crypto investments in the coming six months.
Indian Crypto Ecosystem Is Growing, Report Shows
Cryptocurrency exchange Kucoin published a report on India’s cryptocurrency ecosystem Tuesday. It features the results of a survey, conducted from October 2021 to June 2022, which the company described as “an in-depth look into the development of the blockchain industry and crypto space” in India.
The survey respondents were 2,042 Indian adults aged 18 to 60, the company explained, adding that 1,541 of them were self-identifying crypto investors and 501 were crypto-curious consumers, who were interested in investing in crypto in the coming six months.
Citing the survey results, the report details that as of June:
There are roughly 115 million crypto investors in India who either currently hold crypto or have traded crypto in the past six months, accounting for 15% of the Indian population aged 18 to 60 years.
“The size of crypto investors has seen a mild growth over the past few months despite the enactment of new tax regulations,” the company wrote. “With the country’s large technology-driven young population, rapidly growing internet users and fintech advancement, crypto is on its way to greater adoption, making India a key crypto hub.”
The United Nations Conference on Trade and Development (UNCTAD) also recently estimated the number of crypto investors in India. In a report published in June, the organization stated that 7.3% of the total population in India owns digital currency. The UN estimated in July that India had 1.41 billion people.
The Kucoin report adds that despite the recent crypto market downturn:
More than half [of] crypto investors plan to increase their investment in crypto in the coming six months, indicating an optimistic sentiment towards the market.
The report also notes that “Despite the local government’s stance on digital assets and the levying of a 30% tax on income received from digital assets, the Indian crypto market is expected to reach $241 million by 2030.”
According to survey respondents, the top barriers to investing in crypto assets are knowledge, regulation, and security. “The ambiguity in government regulations has been a key factor deterring potential investors,” the report details, elaborating:
33% 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 hackers being a threat, and 23% fear that they may not get their money back in case of security incidents,” the report adds.
India is still working on cryptocurrency regulation. The Indian government has been consulting with global organizations, such as the International Monetary Fund (IMF) and the World Bank, on crypto policies. Meanwhile, the country’s central bank, the Reserve Bank of India (RBI), has recommended banning all cryptocurrencies, including bitcoin and ether. This week, the governor of the central bank warned that the crypto market may crash and small investors will lose money. The RBI is also preparing to issue a central bank digital currency (CBDC).
What do you think about the findings by Kucoin? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.