Capitalization of the cryptocurrency market in India increased by 641 percent for 12 months, Bloomberg writes with reference to the research of the analytical company Chainalysis. Demand for digital currency in this country has turned the region covering Central and South Asia and Oceania, in one of the fastest growing cryptocurrency markets in the world.
India can be a major center for investments related to cryptocurrencies, as soon as its government will develop clearer regulatory recommendations. In terms of growth rates, the region is ahead of only the Middle East and Europe. In addition to India, the widespread introduction of cryptocurrencies is observed in others relative to poor countries – Pakistan and Vietnam. Capitalization of the digital currency market in Pakistan increased seven times for the year.
However, the leadership of India in the region provided a large activity on platforms of decentralized funding – the country’s share in world transactions amounted to 59 percent. In addition, the region has increased the volume of venture investments related to cryptocurrency. “Close-up transfers of more than $ 10 million in cryptocurrency are 42 percent of transactions sent from addresses in India, compared with 28 percent in Pakistan and 29 percent in Vietnam. These figures suggest that Indian cryptocuridant investors work in the composition of larger and complex and complex organizations, “- the study says.
In 2020, India’s authorities were actively engaged in the cryptocurrency market. The government even developed a bill on a complete ban on the use of digital money, which is nevertheless never adopted. However, analysts from Chainalysis believe that the latest trends suggest that India is limited to the introduction of special taxes.
However, other states go to the end in the fight against cryptocurrency. In September, the People’s Bank of China (analogue of the Central Bank) stated that trade, comparison services (compared of applications for the purchase and sale of securities in the stock market), the production of tokens and derivatives (future price contracts) for cryptocurrency strictly prohibited.