India: 100 million crypto users defy repressive taxes

Crypto traders in India operate in a constant climate of uncertainty. Sometimes, the government promises regulation paving the way for a stable legal framework, sometimes it threatens a crackdown on bitcoin and other crypto-assets. This instability keeps crypto users in suspense. However, despite taxes considered discouraging, India displays impressive crypto adoption, driven by its youth and technological advances.

India and its youth: driving force of a dynamic crypto market

With more than 100 million holders of crypto-assets, India, known for its crypto leadership, is a true global locomotive in the adoption of digital assets. This dynamic rests on a young and connected population : more than half of Indians are under 25 years old.

Raj Karkara, operational director of ZebPay, explains that “the'India is one of the most vibrant crypto markets in the world », thanks to an ecosystem combining blockchain innovations and adapted exchange infrastructures.

Despite a 30% levy on crypto winnings and a 1% withholding taxtrade continues to grow. Ajay Kashyap, influential crypto YouTuber, points out:

• Strong penetration of smartphones;
• Low-cost internet access;
• A marked enthusiasm for blockchain solutions.

So many elements that create fertile ground for crypto users. However, these heavy taxes slow down the frequency of transactions, reducing profits for traders.

Towards more complete crypto adoption: the role of regulations

If India dominates in crypto adoption according to the Chainalysis rankingits full potential remains untapped. Sumit Gupta, co-founder of the CoinDCX exchange, claims thata clear and adapted regulatory framework would be a real key to development. Adoption could further expand if the government relaxes its current tax regime, according to Balaji Srihari of CoinSwitch.

India has, however, taken a few steps forward by saying it is ready to reopen its doors to offshore exchanges. Last May, giants like Binance and KuCoin obtained regulatory recognition. However, more flexible regulation could transform India into a global crypto hub, attracting more investors and talent. In short, the dynamic is there, but administrative obstacles are slowing down its growth.

Thus, while India positions itself as a champion of CBDCs and gold, the Bernstein company advocates strategic diversification by integrating bitcoin. This choice could consolidate its financial future in the face of economic and technological uncertainties.