Over 15 million Indians have been investing crypto with almost $40 billion in disregard of a proposed ban on coin trading

More and more Indians are investing in the cryptocurrency market, especially over the years. According to Chainalysis, investments in crypto assets have grown from around $200 million to nearly $40 billion, making for a 19,900% growth rate, a whopping amount.

Crypto investments in India have gained significant traction over the past year

One of the biggest barriers preventing wider adoption is regulatory uncertainty. Last year, the Supreme Court quashed a 2018 rule banning crypto trading by banking entities, resulting in a trading surge.

However, authorities show no signs of embracing cryptocurrencies. The nation’s central bank says it has major concerns about the asset class and six months ago the Indian government proposed a ban on trading in digital coins – though it has been silent on the topic since.

However, despite the unclear regulatory situation in the country, more than 15 million Indians have bought or sold cryptocurrencies. That’s catching up with the 23 million traders of these assets in the U.S. and compares with just 2.3 million in the U.K.

According to Sandeep Goenka, co-founder of Zebpay, the significant increase in crypto investors has mainly involved Indians aged 18 to 35. It seems young people find it much easier to invest in crypto than in gold:

“You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

Richi Sood, a 32-year-old entrepreneur is one of those who swerved from gold to cryptocurrency. Since December, she’s put in just over 1 million rupees ($13,400) – some of it borrowed from her father – into Bitcoin, Dogecoin, and Ether.

And she’s been fortunate with her timing. She cashed out part of her position when Bitcoin smashed through $50,000 in February and bought back in after the recent tumble, allowing her to fund the overseas expansion of her education startup Study Mate India.

“I’d rather put my money in crypto than gold,” Sood said. “Crypto is more transparent than gold or property and returns are more in a short period of time.”

In the past 12 months alone, the daily transaction value has increased by almost 900%. At the same time, India has yet to adopt comprehensive regulations for the expanding crypto space and the lack of clarity could put many potential investors and traders off.

People in India favor cryptocurrency because of its ease, transparency, and speed at which you can see returns. It has also transpired that the biggest investors are in the 18-35 age range, capturing most millennials and early Gen Z’s. This fits with the recent findings that millennials greatly favor crypto investments over any other asset class.

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