Despite regulatory uncertainty, India’s cryptocurrency investments increase 19,900% in one year

Despite India’s uncertain regulatory climate regarding crypto assets, Investments in digital assets have increased by around 19,900% across the country over the past year.

According to data from blockchain analytics firm Chanalysis, reported by Bloomberg on June 28, Investments in cryptocurrencies spiked in mid-2020 before turning parabolic as markets hit new all-time highs towards the end of the fourth quarter.

Chainalysis estimates that total investments in cryptocurrencies across India have increased from $ 200 million to $ 40 billion in the last year or so, and the company estimates 15 million Indians are exposed to cryptocurrencies.

Monthly value of fiat money that Indians invest in cryptocurrencies. Source: chain analysis
Despite regulatory uncertainty, India’s cryptocurrency investments increase 19,900% in one year
Despite regulatory uncertainty, India’s cryptocurrency investments increase 19,900% in one year

The data illustrates the positive impact of the March 2020 decision by the Supreme Court of India to lift the Reserve Bank of India’s ban For financial institutions, to provide banking services to businesses that work with digital assets.

However, It hasn’t been entirely smooth for India’s crypto sector since the Supreme Court lifted the RBI ban last March, and lawmakers have threatened new laws banning crypto assets many times over the past 15 months.

Despite ongoing threats from new regulatory measures, Sandeep Goenka, co-founder of the local exchange ZebPay, highlighted the growing appetite for digital assets among Indians aged 18 to 35, noting that investments in cryptocurrencies are preferred over gold.. He told Bloomberg:

It is much easier for them to invest in cryptocurrencies than gold as the process is very simple. You go online, you can buy cryptocurrencies, you don’t have to verify it, unlike gold. ”

Local businesswoman Richi Sood, 32, is one of the people who gave up gold in favor of cryptocurrencies. Sood has invested over $ 13,000 in digital assets since December, and he cashed some of his position when BTC topped $ 50,000 in February before reinvesting amid the recent slump.

“I would rather invest my money in cryptocurrencies than in gold. Cryptocurrencies are more transparent than gold or real estate and the returns are higher in a short time “, He said.

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