India has seen a huge boom in digital currency trading since the onset of the epidemic, even though authorities have expressed concerns about the crypto market for years, and even raised the option of a total ban on trading in it. But with 20 million cryptocurrency investors and the potential to become a digital currency powerhouse, the Indian government is forced to find creative solutions that will qualify cryptocurrency trading on the one hand, and satisfy the minds of concerned authorities on the other.
India is one of the largest internet marketers in the world, with 750 million users and hundreds more millions still waiting for the first surfing of their lives. Despite the ambivalent attitude of the authorities, and the long-standing concern of the central bank about the use of cryptocurrencies for money laundering and terrorist financing – the popularity of digital currency trading is only increasing, especially among those aged 35 and under. While 20 years ago their parents chose to invest in gold, an investment that is also a cultural habit in India, young people prefer Bitcoin in their investment portfolio.
Another positive trend that is gaining momentum along with the rising popularity of crypto, is a significant increase in the number of women investing in the market. Data show that about 15% of all users of the various platforms for digital currency shortages are women.
Thus, given the growing popularity of digital currencies and the variety of good news it brings, the Government of India will likely abandon its intentions to ban them altogether, while inventing solutions to address the concerns of the decentralized world. Earlier this month, the government announced it would impose a 30% tax on income from digital assets, a move that experts interpret as a sign that crypto trading will not be banned after all. The Indian government has also announced its intentions to launch digital rupees in the coming months. Experts agree that taxation on digital assets is a step in the right direction, but the Government of India has been quick to clarify that as of now, cryptocurrencies are still illegal in the country.