Indians are outpacing the rest of the world when it comes to cryptocurrency adoption even as investors are still awaiting the official verdict on cryptocurrency exchanges in the country.
A study conducted by the portal BrokerChoose’s annual crypto proliferation index reveals that at over 10 crore, India has the largest number of crypto owners in the world followed by the US and Russia.
As a percentage of the population, India has the fifth-highest rate of crypto owners at 7.3%. This index is topped by Ukraine at 12.73% of the population, followed by Russia at 11.91%, Kenya at 8.52% and the US at 8.31%.
“The digital assets have caught everyone’s attention not only because it has emerged as the best asset class of 2021 but also because other asset classes are not able to fulfill the aspiration of the smart investors who want their money to grow in tandem with global growth rate,” said Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange.
Cryptocurrencies have seen an exponential increase in interest even since the Reserve Bank of India (RBI) ban was lifted in March 2020, with Indian exchanges clocking impressive user additions and a sustained surge in daily trading volumes.
The growing transaction volumes and prices of crypto exchanges in India are more evidence of the country’s virtual currency’s meteoric ascent. According to media reports, the crypto trading site CoinSwitch Kuber has 11 million members, while WazirX has 8.3 million. CoinSwitch Kuber, a cryptocurrency trading platform founded in June 2020, reached the unicorn club this month with a worth of $1.9 billion. Just two months prior, another crypto exchange company, CoinDCX, became India’s first crypto unicorn with a valuation of $1.1 billion.
“India’s crypto market is witnessing high trade volumes not only from the metro cities but from the entire country. Trade volumes from smaller cities show a high level of penetration of digital assets in India and with post-pandemic recovery, retail and institutional investors are looking for high returns on their investments, it looks like digital assets have become their choice to beat inflation,” said Jay Hao, CEO, OKEx.com, a global crypto exchange.
According to industry executives, a positive regulatory environment will prove to be highly beneficial at this stage.
“More clarity from the government around crypto is the need of the hour and the entire digital asset industry is looking forward to an inclusive and growth-oriented crypto regulation bill in India,” said Thakral.