Cryptocurrencies are breaking all records both in terms of investors and sum invested across the globe. Moreover, Indians are not behind in their involvement in crypto exchanges. Their investment in the cryptocurrency market has increased over Rs 75,000 crore or $10 billion from $923 million in April 2020 with the market at an all-time high, as per crypto research and intelligence business CREBACO.
Reportedly, more than 105 million people or 7.90% of the total Indian population have invested in some kind of cryptos this year. Experts said that the reason behind such a surge is due to increased awareness. According to Siddharth Sogani, founder of CREBACO, people have a fair idea about how centralised financial system works, and once after knowing how flawed it is, they have no option but to move to decentralisation.
“For retail investors, there is not much to worry about. For HNIs (high net-worth investors) and institutional investors, there is a risk. Also, for those who are investing over $250,000 above the Liberalised Remittance Scheme (LRS) limit there are risks involved,” said Sogani.
Most cryptos are experiencing a spike in the number of investors and the value of their assets. This comes amid the spurt in new products such as systematic investment plans and fixed deposit plans by exchanges.
BuyUcoin saw an increase of 600% in just one year and the value assets surged 1000% to touch $250 million during the period.
“Positive bull cycles, global regulatory support, big influencers like Elon Musk, VC funding, investment awareness and education are the main reasons for the spurt,” said Shivam Thakral, CEO of BuyUcoin.
“India needs to regulate crypto in order to maintain investor protection,” he warned.
Currently, the cryptocurrency market in India is unregulated and the consensus among policymakers on it should be taxed.
