It seems like insecurity, and there has been minimal impact on India’s crypto-investors in regulatory debates. Indians, famous as one of Gold’s largest holders, are happy to abandon their fixation on the yellow metal to purchase more Bitcoin and Gold.
In the previous year, the global investment exposure of Indian investors to digital assets has increased from 200 million dollars to 40 billion dollars today, reports Bloomberg citing Chainalysis data. This is a stunning 200 percent increase despite all the government’s and central bank’s crypto-hostility.
A narrative from a 32-year old woman businessman, Rich Sood, liquidated and transferred his gold holdings in the value of INR 1 million. The sum stated to have been invested in Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).
This year, Sood sailed over the boom and bust cycles when BTC was over $50,000 in February and bought again during the recent correction, some crypto holdings. Sood said in his speech to Bloomberg:
“I’d rather put my money in crypto than gold. Crypto is more transparent than gold or property, and returns are more in a short period.”
The likelihood of a China-like blanket ban is one of the major challenges that Indian crypto investors might face. There have been various suggestions from the government and RBI of their uneasiness with digital assets, but no particular action has been taken thus far.
Many Indian investors who are on the verge have been unable to access this emerging uncertainty on lawmakers.
“I am flying blind. I have a risk-taking appetite, so I’m willing to take a risk of a ban.”
On the other hand, Indians have become increasingly willing to accept risks by adopting digital assets. Most of these Indian crypto-investors are from the 18-35 age bracket. Sandeep Goenka, the co-founder of ZebPay, told Bloomberg that India’s investors are more interested in the easy liquidity that bitcoin offers over gold.
In addition, numerous Indian investors secretly play the crypto game with the regulation. An anonymous banker claimed that he was ready to play crypto games without noise, without clear tax guidelines for crypto in India and tax collectors.