With a large young population and a significant global economic standing, it’s no surprise that India’s cryptocurrency industry has been buzzing in recent months. Several successful cryptocurrency exchanges have recently emerged in the country, with significant growth in both user base and investment. According to new research, the sum of these could surpass all previous milestones.
According to a report by crypto research and intelligence firm CREBACO, cryptocurrency investment in India has surpassed $10 billion, up from $923 million in April of last year. According to the report, over 15 million people have already invested in digital assets.
The latter statement, however, is debatable, as Nischal Shetty, CEO of prominent crypto exchange WaxirX, recently refuted earlier claims that the Indian crypto industry had crossed the 100 million user mark. He claimed that his calculations indicated a maximum base of 20 million people. WaxirX claims to have 8.5 million users across the country.
Nonetheless, the growth of the country’s crypto industry is undeniable, and CREBACO founder Siddharth Sogani believes this is due to increased public awareness of the flaws of the centralized economy and the need for decentralization. He was quoted as saying,
“There isn’t much to worry about for retail investors.” There is a risk for HNIs (high net worth investors) and institutional investors. There are also risks for those who invest more than $250,000 above the Liberalised Remittance Scheme (LRS) limit.”
The introduction of new investment products by many of these exchanges, such as systematic investment plans and fixed deposit plans, is another sign that India’s crypto market is maturing.
According to a recent Chainalysis report, which ranked India first in terms of grassroots and institutional adoption, “a much larger share of activity was taking place on DeFi platforms at 59 percent.” Exchanges have also reaped large profits and funding in such a scenario.
Both CoinDCX and CoinSwitch, the country’s top exchanges, achieved unicorn status this year as a result of successful funding rounds led by industry heavyweights such as Coinbase Ventures and a16z. And the exchanges, in turn, are not leaving any stone unturned in their pursuit of more users.
With the Hindu festival of “Dhanteras” approaching, which is literally celebrated by purchasing gold or other assets, many Indians are considering going digital this time. According to local reports, many young investors prefer these assets to traditional gold, and many exchanges have enlisted the help of top-rated Bollywood celebrities to entice young investors ahead of the festival.
All of these exciting developments are taking place against the backdrop of a looming regulatory shadow, as a cryptocurrency bill is set to be introduced in the country’s parliament during the country’s next budget session in February. While the future of the country’s industry is unknown, an earlier draft of the bill proposed a blanket ban followed by the release of a CBDC.