The crypto industry has steadily grown in India. Although there is uncertainty in regards to governmental oversight, and high taxes, young investors continue to flock to the emerging asset class. According to a new survey by KuCoin, there are 115 million crypto investors in India. This accounts for nearly 15% of the Indian population for ages 18 to 60. However, many of them are concerned about the government’s stance on the industry.
As per the report, an additional 10% of Indians plan on making their way into crypto investments in the next 6 months.
According to KuCoin, people in India wanting to hold the same amount of crypto that they already do has increased from 22% in Q1 of 2022 to 29% in Q2 of 2022. People wanting to sell some has increased from 10% to 12%. Whereas the number of people who want to buy more has gone down, 54% in Q2 of 2022, vs 64% in Q1 of 2022. Lastly, people wanting to sell all their crypto investments remain the same at 5%.
Why the decrease in crypto investors in India?
The decrease in investments is most likely due to the Indian government’s brutal taxation of digital assets. On the 1st of April, the Government of India implemented a 30% tax on crypto. 33% of respondents cited governmental regulation as a problem.
Another concern for many is the security of cryptocurrency investments. 26% are concerned that hackers pose a threat, and 23% are concerned that in the event of a security breach, they might not receive their money back.
41% of respondents claim they are unsure of the types of cryptocurrency investment products to select. 27% struggle to foresee market trends and the value of cryptocurrencies, and 37% struggle to manage the risk of their portfolios. 21% are unsure about how cryptocurrency operates. Additionally, 20% of users say it is too difficult to use the program UI.
Is there room for growth?
Long answer short, yes. As per KuCoin’s report the number of crypto investors in India, aged 18-30, increased by 7% in Q1 of 2022. Additionally, 39% of crypto investors are below the age of 30.
According to 56% of respondents, they are investing in the technology to be a part of the financial future. According to 54% of investors, cryptocurrency will yield a higher return on investment than other assets, and 52% of investors buy it to generate passive income and raise their standard of living.
India’s pro-technology young population, growing internet users, and fintech advancements, make the country a perfect spot for crypto to thrive.