State of crypto in India

Despite the regulatory uncertainty and confusion regarding policies affecting crypto, India’s crypto adoption rate has continued to grow rapidly. As of November of 2021, crypto ownership in India was at the 14.7% mark. Five months later, in April this year, the value doubled to 29.9%, according to Finder’s Report data.²

According to the Chainalysis 2021 Global Crypto Adoption Index, India ranks second in overall index rating, behind Vietnam.³ This comes amidst suggestions that Crypto is illegal in the country. In February, Sitharaman noted that the government wishes to impose a 30% tax on any income from trading crypto and a further 1% tax on all crypto transactions.⁴

The RBI had in 2018 sought to ban Crypto, but a ruling from the Supreme Court destabilized the apex bank’s plans; this leaves crypto well within the grey area – neither legal nor illegal. India-based crypto enthusiasts are looking to see what will become of these recent plans. India, like other countries, has also shown interest in issuing a CBDC with an underlying Rupee value.