India fueling world’s fastest crypto market
The tremendous growth is pushing the government to accelerate a solid crypto-positive regulation
Even though the Indian government is yet to decide the legality of cryptocurrency, demand for crypto among citizens is increasing rapidly.
This has also been recorded in various researches done in India by various global crypto consulting organizations.
One such research was recently done by Chainalysis, a blockchain data platform, which has found that demand for digital coins in India is helping to make a region spanning central and southern Asia and Oceania one of the fastest-growing cryptocurrency markets globally.
The report also said that the pace of expansion there is the strongest after the Middle East and much of Europe, with India’s market growing 641% over 12 months.
On the methodology of the report, Chainalysis said that they have looked at trends over the year to June using a metric that estimates the total cryptocurrency received by a country.
The report said,
“Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42% of transactions sent from India-based addresses and those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organizations.”
For the last few years, the Indian crypto industry has gone through many speed breakers, including on the regulatory front, with some reports that the country might try to ban or otherwise restrict crypto.
Chainalysis pointed out that more recently it looks as though the government may simply favor taxation.
Government to bring crypto under tax net
Cryptocurrency trading may soon face a tax structure in India as the finance ministry has formed a new committee that has been mandated to find out if income made by crypto-trading could be taxed.
The new committee has been given four weeks to submit its report to the finance ministry. During the four week period, the committee will have to inform if income made by trading in cryptocurrencies can be taxed as capital gains or they would need to be classified under a newly created tax category.
The development comes at a time when the ministry is looking to present the Cryptocurrency Bill in the upcoming parliament session.
As of now, even if the country has no solid laws to regulate it, trading in cryptocurrencies has witnessed momentum in India, giving more push to a solid change in that realm to happen soon enough.