According to a KuCoin survey, nearly 115 million Indians have cryptocurrency investments, though many of them are still worried about the direction the government is taking the industry.
Despite a traditionally unfavorable stance of the government against the sector, there are currently an estimated 115 million crypto investors in India, according to new research.
The most recent estimate of users in India is provided by cryptocurrency exchange KuCoin, which on Tuesday published the results of its “Into The Cryptoverse India Report” survey. The estimated 115 million cryptocurrency users in India constitute 15% of the country’s population between the ages of 18 and 60.
The 33% of survey participants who were concerned about unclear government laws that would put off potential investors was a significant finding. There were also clear security worries, with 26% of respondents worrying about hacks and vulnerabilities and 23% worried about losing money in the event of a cyber threat.
The research is based on a sample of 2042 Indian people who were surveyed between October 2021 and June 2022 and ranged in age from 18 to 60. 1541 respondents declared themselves to be cryptocurrency traders or owners who had traded in the past six months and who still intend to do so.
There are many obstacles to continuous use and the onboarding of new users, with education, regulatory, and security issues being the main ones for the nation’s population. 41% of respondents said they were unsure of the kind of cryptocurrencies to invest in, and 37% said it was challenging to control portfolio risk. Another 21% of respondents were unaware of the basics of how cryptocurrencies operate.
A significant percentage of cryptocurrency users in India are under the age of 30, with 39% of investors in the first quarter of 2022 falling in this age range. Future-oriented investing also surfaced as a key theme, with 54% of respondents believing that cryptocurrency investments may yield a greater return than traditional assets.
KuCoin’s India report presents a favorable image of the expansion of cryptocurrency acceptance in that country, but the apparent inconsistency in its government’s policy toward the industry is still a barrier. The implementation of a 30% tax on unrealized cryptocurrency gains in April 2022 was widely criticized, and users are additionally charged a 1% transactional tax.
Data from Indian exchanges indicates a sharp decline in transaction volumes following the implementation of tax rules on cryptocurrency trading, demonstrating the impact of this new law.