- There are around 115 million crypto investors in India who currently hold or have traded in the past six months.
- Around 10% of Indian adults are also crypto-curious.
- The study notes Indian crypto market is expected to reach $241 million by 2030.
India’s crypto space is growing by day by day. According to cryptocurrency exchange Kucoin’s Into The Cryptoverse India Report, around 115 million crypto investors in India either currently hold crypto or have traded crypto in the past 6 months, accounting for around 15% of the Indian population aged 18 to 60 years.
The study further found that around 10% of Indian adults are also crypto-curious consumers who plan to invest in cryptocurrency in the coming six months.
The survey conducted from October 2021 to June 2022 had 2,042 Indian adult respondents aged 18 to 60, of which 1,541 were self-identifying crypto investors and 501 were crypto-curious consumers.
As per the report, a lack of sufficient knowledge of the crypto market and ambiguity in government regulations were major reasons deterring potential investors.
Kucoin stated that 41% of respondents were unsure which types of crypto investment products to choose, 37% had difficulty managing the risk of their portfolios, and 27% had trouble predicting the market directions/values of crypto.
The report stated that 21% of the respondents were unaware of how crypto works. The study found that the lack of safety/security surrounding crypto investment also prevents people from engaging in crypto trading.
Further, 26% of the respondents were worried about hackers being a threat, and 23% feared they wouldn’t get their money back in case of security incidents.
Commenting on the potential growth for the crypto space in India, the report adds: “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.”
It further notes that despite the Indian 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 approximately $241 million by 2030.
This was about the Finance Bill 2022, where proposed amendments to the Income Tax Act 1961 made income from the transfer of virtual digital assets to be taxed at 30%.
While the Indian Government is working on cryptocurrency regulation, the country’s central bank, the Reserve Bank of India (RBI), is looking to ban all cryptocurrencies.
RBI governor Shaktikanta Das in RBI’s annual report, described cryptocurrencies as a “clear danger,” adding that anything that derives value based on make-believe, “without any underlying,” is just speculation under a sophisticated name.