India among the top crypto adopters. Will it alarm the government to speed up the regulations?
According to the report, one in fourteen Indians invested in the new time value despite the covid-19 pandemic.
The report highlighted how the use of crypto had increased exponentially during the Covid pandemic globally and especially in emerging economies like India, according to Mohammed Roshan, CEO and co-founder, GoSats.
“The report clearly mentions remittances and the fact that crypto was perceived as a way to protect household savings were the main reasons for the increase in adoption in emerging economies,” Roshan said.
India was ranked sixth in crypto adoption. Only two developed nations featured in the top 10 – Singapore in fourth and the United States in sixth.
Vikram Subburaj, CEO, Giottus Crypto Platform said that the high-level crypto adoption has benefited many investors. He suggested that the asset could grow and decline in the coming years.
The crypto bull of 2021 attracted many retail and institutional investors to take a dip into the lucrative world of crypto assets, fueling the growth of crypto investment in India with savvy investors, according to the experts.
However, the increase in the use of crypto assets may raise some red flags for the government, which is in discussions and deliberations for the regulatory framework for the private crypto assets in the country.
The Reserve Bank of India has vocally criticized these assets on various platforms, while the Enforcement Directorate (ED) recently froze bank assets of trading platforms such as WazirX and Vauld.
The UNCTAD report highlighted the risks and costs of crypto and suggested seeking extra caution from governments. However, the market participants said that there is nothing to worry about and all crypto transactions are within the scope of the related agencies.
Any crypto regulation should span technological challenges and the global, borderless operational challenges, according to Giottus’ Subburaj. “However, as of now, crypto remains an individual, entity or private risk,” he said.
Roshan of GoSats said the government is aware of the growing crypto adoptions and that is why the bill is on the cards. He added that the industry is in its nascent stage and the center should understand the potential along with the challenges.
As there is a surge in crypto investments in India, market trackers said the government should expedite the crypto bill to frame the regulations in the interest of all stakeholders.
Shivam Thakral, CEO, BuyUcoin, said the government had done its best as a decision maker for the crypto industry. “The new crypto tax regime has made the crypto transaction transparent and traceable to the government,” he said.
“India’s crypto industry is too big to ignore and a strong business-friendly crypto industry policy will enable investors to trade with confidence and boost the morale of the young workforce willing to make a career in this space,” he added to.
Tarusha Mittal, COO, and co-founder, UniFarm, said that Web3 is the technology of the future and India does not want to be left behind.
“The world is moving at a fast pace when it comes to adopting crypto and blockchain, and India should not miss this unprecedented opportunity to become the blockchain capital of the world,” she added.
