Key takeaways
- India crypto investment rises to $40 billion in 2021
- Major shift from gold to crypto investments
- Crypto assets legal status still remains uncertain in India
Blockchain analysis firm Chainalysis released a report that shows a major surge in crypto-related investments in India. According to the data, the amount of crypto investments in India has hit $40 billion in 2021.
This is a significant increase from $200 million recorded in 2020, and we are only halfway through the year. It is understood that the rise could be as a result of the covid 19 pandemic last year that saw a significant shift in investment to cryptocurrencies globally.
According to the Chainalysis report, the number of persons that trade cryptocurrencies in the Asian nation has reached over 14 million. This is significantly higher than developed countries like Great Britain, which has less than 2.3 million persons involved in cryptocurrencies.
India’s numbers also compare favorably with the world’s biggest economy, the US, which has around 22 million cryptocurrency users. India is known for its love of precious metal, with many households holding pieces of gold and other priced gems.
This report from Chainalysis shows that the crypto market is growing in the Asian country despite increasing scrutiny from regulators. Indian financial authorities caused controversy earlier in 2021 with a proposed bill seeking to criminalize cryptocurrency activities in the country.
The bill was expected to contain stiff penalties and possible jail time for offenders. However, it appears that the backlash against the bill has caused a change of plans for the government. A recent report emerged that the Indian government had decided to regulate Bitcoin as an asset instead of a blanket ban.
Despite this, there is no clear legal framework, and crypto-assets' status remains unclear. However, the latest evidence from the Chainalysis report shows that crypto adoption is on the rise.
What do you think about the surge in crypto adoption in India?
