With the boom of cryptocurrencies, India ranked second among the users of cryptocurrency around the world in the year 2021according to a report by Chainalysis Chainanalysis.
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As the cryptocurrency market in India has grown by 641 percent in the year to June 2021according to an October report by the same research firm.
Vietnam is the unbeaten winner in the ranking, and Pakistan is in third place according to the research, with the highest value of crypto-transactions, in addition to payments made by individuals.
The report stated:
“Many emerging markets are facing significant currency devaluation, which has prompted residents to buy cryptocurrencies on P2P platforms, in order to preserve their savings.”
According to the report, the reason behind the cryptocurrency fever in India, is that the country’s investment procedures are practical “Long and bitter”Signing a lot of documents requires about three or four days, while investing in cryptocurrency takes less than an hour.
Also read: India’s Prime Minister: A common global effort is needed to tackle crypto problems
The Managing Director of Quantstamp, Krishna SriramWithin the research, the popularity of centralized exchanges made it more difficult for users in regions with uncertain regulation such as India.
On the other hand, Indian investors were skeptical about the possibility of accepting cryptocurrencies as legal tender in India, with the Minister of Finance clarification Nirmala Sitharamanon taxation of virtual digital assets.
In addition to the proposal to impose a tax rate 30 percent on gains made in such deals, and subject crypto transactions above the threshold, to 1% of the total TDS withholding tax.
It is worth noting, that no country has adopted cryptocurrency as a legal currency, except for El Salvador, which has adopted Bitcoin As legal tender in September last year, India is working on legislation to regulate cryptocurrency, but no draft has been released to the public yet.
Also Read: Should India Really Ban Bitcoin and Other Cryptocurrencies?
The government has included in its agenda, “The Cryptocurrency Law and the Regulation of the Official Digital Currency Law”In order to regulate cryptocurrencies in the previous parliament session, the bill comes amid concerns that such currencies could be used to lure investors with misleading claims.
It should be noted that there is currently no regulatory legislation or any ban on the use of cryptocurrencies in India.
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