The Indian Crypto market has been growing rapidly in recent years, with increasing interest and adoption among individual investors and businesses. As per a post by Outlook India, in October 2022, there were around 15 to 20 million active Crypto investors in India (almost a percent of our current population).
Despite the regulatory uncertainty, the interest in Crypto among Indian investors has been growing. Many Indian investors have been buying and trading Cryptos through overseas exchanges or peer-to-peer platforms. Thus, with so many Indians involved here, it makes sense to understand what kind of support they are looking for.
Generally, every Crypto investor wants to see growth in the value of the Crypto they invest in, as well as the overall development and adoption of the technology. This can include the expansion of the ecosystem, the integration of Cryptos into mainstream financial systems, and the advancement of blockchain technology. All this is possible only when clarity on what lawmakers think and expect is available.
To speed up the process, Crypto believers have been voicing out their asks on several platforms. In this blog, we have collated some of them for a quick read.
Indian crypto investors want similar things as other Crypto investors worldwide, with specific requests tailored to the Indian market. These include:
- Legal recognition of Crypto assets: Indian investors want lawmakers to recognize Crypto assets as legitimate investments and provide legal protection for them. No one likes uncertainty, and thus a predictable legal environment for investing is asked for.
- Clarity on regulations: Indian Crypto investors want a clear regulatory framework that provides certainty and protection for their investments while also preventing money laundering and illegal activities.
- Taxation framework: The Budget 2022 introduced a huge tax burden on Crypto traders. Now, while the next Budget is around the corner, traders are asking for a fair and transparent taxation framework for crypto investments in order to plan and budget their investments effectively.
- Fair treatment: Investors want lawmakers to ensure that Crypto is treated fairly compared to other types of assets or investment vehicles and that they are not subject to discriminatory or overly burdensome regulations. A level playing field for Crypto projects with no monopoly or domination is the ask.
- Innovation and growth: Crypto enthusiasts want the Government to promote innovation and development in the Crypto and Blockchain space. Incentives for start-ups and companies working in this field can definitely help. Recognition of Crypto’s unique characteristics and potential benefits, such as decentralization and privacy, is needed.
- Positive stance towards Crypto: Crypto folks in India want the government to take a positive stance towards Crypto and Blockchain at the earliest and also recognize their potential benefits for the economy and society.
- Access to more Crypto opportunities: Crypto is a promising asset class, and over 15 crore Indians believe so. Existing and potential investors want more opportunities to invest in different crypto assets and platforms to access the global crypto market so that they can diversify their portfolios.
- Sandbox for the Crypto and Blockchain space: Indian Crypto investors want the Government to establish a regulatory sandbox to allow start-ups and existing companies to test and innovate in the Crypto and Blockchain space.
- Protection of their rights as investors: Indian protection mechanism is best-in-class for all other industries. Now, Indian crypto investors want the Government to protect their rights as Crypto investors as well and ensure that their investments are safe and secure.
Overall, Crypto investors in India want lawmakers to take a balanced approach that recognizes the potential benefits and risks of Crypto and allows for their growth while protecting investors. Today, the Crypto industry in India is still in flux, with much depending on how the Government chooses to regulate the sector in the coming months. Let’s hope for the best and look forward to a democratic approach soon!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.