• Cryptocurrency investments in India have increased by 19,900% in a year

  • Despite regulatory uncertainties, India’s bitcoin investments increased from $200 million to roughly $40 billion in the last year.

    According to Chainalysis, a blockchain forensic organization, crypto investments in India have increased by 19,900% in the last year, from $200 million to roughly $40 billion.

    The increase in investment comes despite regulatory ambiguity in India about the status of cryptocurrencies, with the country’s central bank threatening to ban them on multiple occasions. In April 2018, the Reserve Bank of India (RBI) went so far as to prohibit local financial institutions from serving crypto firms.

    Even though the Reserve Bank of India (RBI) reversed course last month, telling banks that they can ignore a 2018 circular prohibiting them from cooperating with crypto firms, there is still doubt about India’s next steps.

    The government has relaxed its stance slightly, with the country’s finance minister proposing a “window” for cryptocurrency experimentation. The government has also convened an expert council to investigate regulation, claiming that an upcoming crypto bill will protect investors from market volatility.

    According to Chainalysis’ research, the government’s subdued enthusiasm for crypto isn’t shared by local investors, with Indians aged 18 to 35 exhibiting the most interest.

    Sandeep Goenka, the co-founder of local exchange ZebPay, told us that “they find it considerably easier to invest in crypto than gold because the process is quite simple.” “You go online and buy crypto; unlike gold, you don’t have to authenticate it.”

    However, according to another Chainalysis research released earlier this month, India lags behind other markets in terms of Bitcoin investment earnings, placing 18th out of 25 countries with only $241 million.

    To put this into context, the United States came in first with $4.1 billion, followed by China ($1.1 billion), Japan ($900 million), the United Kingdom ($800 million), and Russia ($600 million).

    According to Chainalysis, this could be due to the Indian government’s anti-crypto sentiment, as the RBI’s 2018 judgement made purchasing and trading digital assets “very difficult” for Indian citizens.

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