Kucoin Report Shows India Has 115 Million Crypto Investors

Kucoin Report Shows India Has 115 Million Crypto Investors

The new Kucoin report has revealed that India has about 115 million crypto investors and the crypto economy is growing despite the recent market downturn and new tax regulations. More than half of the crypto investors surveyed are planning to increase their crypto investments in the next six months.

The Indian Crypto Ecosystem Is Growing

Cryptocurrency exchange Kucoin published a report on India’s cryptocurrency ecosystem on Tuesday. It features the results of a survey, conducted from October 2021 to June 2022, which the company described as "an in-depth look into the development of the blockchain industry and crypto space" in India.

The survey respondents were 2,042 Indian adults aged 18 to 60 years, the company declared. 1,541 of them were self-identifying crypto investors, and 501 were crypto-curious consumers, who seem to be interested in investing in the next six months.

Citing the survey results, the report details that, as of June:

"There are about 115 million crypto investors in India who either currently hold crypto or have traded crypto in the past six months, accounting for 15% of the Indian population aged between 18 and 60 years."

"The size of crypto investors has seen mild growth over the past few months despite the enactment of new tax regulations," the company wrote. "With the country’s large technology-driven young population, rapidly growing internet users, and fintech advancement, crypto is on its way to greater adoption, making India a key crypto hub."

The United Nations Conference on Trade and Development (UNCTAD) also recently released an estimated number of crypto investors in India. In a report published in June, the organization stated that 7.3% of the total population in India owns the digital currency. 

The Kucoin report adds that despite the recent crypto market downturn,

"More than half of crypto investors plan to increase their investment in crypto in the coming six months, indicating an optimistic sentiment towards the market."

The report also notes that "Despite the government’s stance on digital assets and the levying of a 30% tax on income received from digital assets, the Indian crypto market is expected to reach USD 241 million by 2030."

According to survey respondents, the top barriers to investing in crypto assets are knowledge, regulation, and security. The report details: "The ambiguity in government regulations has been a key factor deterring potential investors."

"33% report that government regulation is a concern when considering investing in crypto."

"The safety of investing in crypto is also a concern for many, as 26% worry about hackers being a threat, and 23% fear that they may not get their money back in case of security incidents," the report adds.

India is still working on cryptocurrency regulation. The Indian government has been consulting with global organizations such as the International Monetary Fund (IMF) and the World Bank on crypto policies. The Reserve Bank of India (RBI) has recommended banning all cryptocurrencies, including bitcoin and ether. This week, the Reserve Bank of India (RBI) Governor warned that the crypto market may crash and small investors will lose money. The RBI is also preparing to issue a Central Bank Digital Currency (CBDC).