A third of India’s estimated 115 million crypto users worry about regulations

India is now home to an estimated 115 million cryptocurrency investors despite a historically negative attitude towards the sector from the government, according to new data.

The latest measurement of the number of users in India comes from cryptocurrency exchange KuCoin, which published the findings of its ‘Into The Cryptoverse India Report’ survey on Tuesday. The estimated 115 million crypto users represent around 15% of the Indian population between the ages of 18 and 60.

A key highlight was the 33% of survey takers who were concerned about ambiguous government regulations that could deter potential investors. Security concerns were also evident, with 26% worried about hacks and exploits, while 23% worried about losing money in the event of a security incident.

The report is based on a sample of 2,042 Indian adults aged 18 to 60 who were surveyed between October 2021 and June 2022. 1,541 respondents identified themselves as cryptocurrency investors who either own crypto or have traded in the past six months and have intend to continue to do so. so.

Barriers to continued adoption and introduction of new users are extensive, with education, regulatory and security concerns being the main concerns for the citizens of the country. 41% of respondents admitted that they were not sure what type of cryptocurrency to invest in, while 37% found it difficult to manage the risk of portfolios. Another 21% of respondents had little knowledge of how cryptocurrencies work.

Related: India needs global cooperation to decide crypto’s future, says finance minister

A growing portion of India’s cryptocurrency users are under the age of 30, with 39% of investors between the ages of 18 and 30 identified in the first quarter of 2022. Investing for the future also emerged as a prominent theme, with 54% of respondents seeing the potential of cryptocurrencies for to give higher returns than conventional assets.

Cointelegraph caught up with KuCoin CEO Jonny Lyu to unpack the findings of their India report, who admitted that the number of crypto users in the country was a “confirmation of expectations.” Given that India is the most populous country in the world with a rapidly developing middle class that is tech-savvy, Lyu expected to see a proportionately strong layer of investors engaged in cryptocurrencies:

“Despite the government stance affecting local crypto market sentiment, people continue to show interest in new ways of value accumulation and earning.”

Lyu also noted that regulatory concerns were not the be-all and end-all of the future use of cryptocurrencies in the country, suggesting that it was only one factor influencing the number of new users in the space.

The KuCoin CEO also suggested that India’s vast population just needs to be informed about the potential use cases of cryptocurrencies and their underlying technology for mass adoption to take place:

“The problem is the lack of general awareness of the potential of cryptocurrencies. The situation may change as more Indians become aware of cryptocurrencies and sufficiently strong projects are introduced that can inject them into mass use with associated information support.”

KuCoin’s India report paints a positive picture of the growth of cryptocurrency adoption in India, but the apparent disparity in the government’s attitude towards the sector continues to be an obstacle. A 30% tax on unrealized crypto gains was introduced in April 2022, which met with widespread criticism, while users are also charged a 1% tax per transaction.

The impact of this new law was felt with data from exchanges in India showing a massive drop in transaction volumes in the wake of the tax laws enforced on cryptocurrency trading.