Despite the uncertain regulatory climate in India for cryptocurrencies, nationwide investment in digital assets has increased by nearly 19,900% over the past year.

Cryptocurrency investment surged in mid-2020 and then a parabola as markets hit full-time highs at the end of the fourth quarter, according to data from analysis firm Chanalysis released by Bloomberg on June 28.

Chainalysis estimates that total crypto investment across India has grown from $200 million to $40 billion in the past year or so, and the company estimates that 15 million Indians have access to cryptocurrency.

Monthly Value of Fiat Invested in Cryptocurrency by Indians: Sequence Analysis
This data shows the positive impact of the March 2020 decision of the Supreme Court of India to lift the Reserve Bank of India’s ban on financial institutions from providing banking services to digital asset firms.

However, for the crypto sector in India, things have not gone very smoothly since the Supreme Court lifted the RBI ban in March last year, and lawmakers often threatened new legislation banning cryptocurrency in the last 15 months.

Despite constant threats of renewed retaliation from regulators, Sandeep Goenka, co-founder of local exchange ZebPay, highlighted the growing interest in digital assets among 18-35-year-olds of Native Americans, noting that they would rather invest in cryptocurrencies than gold. He told Bloomberg:

“It is easier for them to invest in cryptocurrency than in gold because it is a very simple process. When you go online, you can buy cryptocurrency, and you don’t need to confirm it, unlike gold.”
On the subject: Current Indian law may impose a 2% tax on cryptocurrencies purchased on overseas exchanges.

Rishi Sood, a 32-year-old local businessman, is one of those who dumped gold in favor of cryptocurrency. The court has invested more than $13,000 in digital assets since December, cashing out a portion of its position when BTC topped $50,000 in February before reinvesting in the midst of the latest crash.

She said, “I would rather invest my money in cryptocurrency than in gold. Cryptocurrency is more transparent than gold or real estate, and profitability is higher in the short term.”

Source: CoinTelegraph

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