There are an estimated 115 million cryptocurrency investors in India, despite the government’s well-known denial of the sector, according to new data.
The latest indicator on the number of users in India comes from cryptocurrency exchange, kCoin, who published the results of his survey on Tuesday “Into The Cryptoverse India Report”. It is estimated that 115 million cryptocurrency users represent around 15% of the Indian population between the ages of 18 and 60.
An important fact is that 33% of those surveyed are concerned about the ambiguity of government regulations, which could deter potential investors. Security concerns were also evident, with 26% concerned about hacks and exploits, while 23% were concerned about losing funds in the event of a security incident.
The report is based on a sample of 2,042 Indian adults aged 18-60 who were surveyed between October 2021 and June 2022. 1,541 participants identified themselves as cryptocurrency investors who own cryptocurrency or have traded in the last six months and intend to continue doing so.
The obstacles to continuous adoption and the incorporation of new users are very varied, with education, regulation and security being the main concerns of the country’s citizens. 41% of respondents admitted to not being sure what type of cryptocurrencies to invest in, while 37% found it difficult to manage the risk of investment portfolios. Another 21% of those surveyed had little knowledge of how cryptocurrencies work.
A growing share of cryptocurrency users in India are under the age of 30, with 39% of investors aged 18-30 identified in Q1 2022. Investing for the future also emerged as a prominent theme, with 54% of respondents seeing the potential for cryptocurrencies to provide a higher return on investment than conventional assets.
Cointelegraph contacted the CEO of KuCoin, Johnny Lyu, to address the findings of his firm’s report on India, who admitted that the number of cryptocurrency users in the country was “confirmation of expectations.” Since India is the most populous country in the world, with a rapidly developing and tech-savvy middle class, Lyu expected to see a proportionately strong layer of committed cryptocurrency investors:
“Despite the government’s stance affecting local cryptocurrency market sentiment, people continue to show interest in new means of accumulating and increasing value.”
Lyu also noted that regulatory concerns were not the end point of cryptocurrency adoption in the country, suggesting that it was just one factor affecting the rate of new users in the space.
The KuCoin CEO also suggested that the vast population of India just needs to be informed about the potential use cases of cryptocurrencies and their underlying technology for mass adoption to occur:
“The problem is the general lack of awareness of the potential of cryptocurrencies. The situation may change as more Indians become aware of cryptocurrencies and sufficiently robust projects are introduced that can inject them into mass use with the corresponding informational support.”
KuCoin’s report on India paints a positive picture of the growth of cryptocurrency adoption in the country, but the apparent disparity in the government’s stance towards the sector remains a stumbling block. A 30% tax on unrealized gains in cryptocurrencies was introduced in April 2022, drawing widespread criticism, while users are also subject to a 1% tax per transaction.
The effect of this new law was felt, as data from exchanges in India shows a massive drop in transaction volumes as a result of tax laws applied to the sale of cryptocurrencies.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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