Despite regulatory uncertainty, Indian cryptocurrency investment soars by 19,900% in one year

Although India’s regulatory environment for crypto assets is uncertain, the country’s investment in digital assets has increased by approximately 19,900% in the past year.

According to data from the blockchain analysis company Chanalysis, Report According to a Bloomberg report on June 28, as the market soared to a record high at the end of the fourth quarter, cryptocurrency investment increased in mid-2020 and then went parabolic.

Chainalysis estimates that in the past year or so, India’s total investment in cryptocurrencies has increased from US$200 million to US$40 billion, and the company estimates that 15 million Indians have been exposed to cryptocurrencies.

The legal monthly value of Indian investment in cryptocurrency: Chainalysis

The data illustrates the positive impact of the decision of the Supreme Court of India in March 2020 Overturn the ban on the Reserve Bank of India Regarding financial institutions that provide banking services to companies operating digital assets.

However, since the Supreme Court repealed the RBI ban in March last year, India’s encryption industry has not been smooth sailing, and lawmakers have often threatened to adopt new measures. Legislation prohibiting crypto assets In the past 15 months.

Despite the ongoing threat of a new round of regulatory crackdowns, Sandeep Goenka, the co-founder of local exchange ZebPay, emphasized that Indians between the ages of 18 and 35 are increasingly interested in digital assets and pointed out that they prefer to invest in cryptocurrencies rather than gold. He told Bloomberg:

“They found that investing in cryptocurrency is much easier than investing in gold, because the process is very simple. You go online, you can buy cryptocurrency, you don’t have to verify it, which is different from gold.”

related: Existing Indian laws may impose a 2% tax on cryptocurrencies purchased from offshore exchanges

32-year-old local entrepreneur Richi Sood was one of those who switched from gold to cryptocurrency. Since December, Sood has invested more than $13,000 in digital assets, cashed out part of her position when BTC broke through $50,000 in February, and then reinvested in the recent crash.

“I would rather invest my money in cryptocurrency than gold. Cryptocurrency is more transparent than gold or property, and returns higher in a short time,” she said.