Amidst the ongoing Covid-19 pandemic, India's cryptocurrency sector thrives, demonstrating growth and resilience.
India's digital currency sector is experiencing a dramatic surge, with cryptocurrency exchanges and banks observing escalating trade volumes and new signups - even in the midst of the country's worsening Covid-19 crisis.
A study by Bit2Buzz surveyed crypto banks and exchanges about the Indian crypto industry's demographics and trading behaviors. Their aim was to gather insights into Indian's trading habits, female participation, the impact of Covid-19, and the role of crypto and blockchain companies in India.
Rising Female Participation
Bit2Buzz surveyed leading crypto platforms like Wazirx, Unocoin, Coindcx, Pocketbits, and Bitbns. The results showed that the majority of the users were young adults between 18 and 35. Interestingly, Unocoin and Bank of Hodlers reported a significant proportion of middle-aged users aged between 35 and 50.
The survey focused on the trading habits of Indian female crypto traders, fueled by the recent statistics from CoinMarketCap suggesting a 43.24% increase in female crypto enthusiasts in Q1 2020. Major crypto banks like Cashaa, Bank of Hodlers, and Oropocket reported a higher percentage of women users compared to cryptocurrency exchanges.
National Interest Stirred by Cryptocurrencies
Unicorn, one of the surveyed platforms, revealed a 15% female userbase, while Bitbns and Pocketbits reported 11% and 2% respectively. The report stated that the lockdown due to Covid-19 helped Indians invest more time in learning about cryptocurrencies, fostering curiosity.
Government's Regulatory Dilemma
Rumors of a potential ban on cryptocurrencies in India circulated recently. However, players in the market believe that such a ban is unlikely. The Indian government seems to be delaying decisions on cryptocurrency regulation, and it remains a legal practice as per the Reserve Bank of India.
Enrichment: Current Regulatory Landscape
Indian policymakers have not yet formulated a definitive law to regulate cryptocurrencies. However, there has been progress regarding defining and taxing digital assets, with the Finance Act, 2022, introducing the concept of "Virtual Digital Assets" (VDAs). This classification encompasses cryptocurrencies, non-fungible tokens (NFTs), and other digital assets. The tax system now includes a 30% tax on crypto gains, 1% TDS on transactions, and integration of VDAs into the Income Tax Act through Section 115BBH. The 2025 Budget strengthened oversight with stricter reporting requirements and expanded the definition of VDAs to cover all crypto assets.
Despite these advancements, the lack of clear regulations persists, creating uncertainty for investors and businesses alike. The ambiguity around whether cryptocurrencies are assets, commodities, or securities complicates the regulatory landscape.
Impact on Female Participation
The impact of the regulatory environment on women's involvement in the Indian cryptocurrency market is not yet clear. The regulatory ambiguity might deter overall participation and increase the risk of legal and financial complications. However, a more defined regulatory framework could potentially increase the engagement of women in crypto trading, providing a safer and more predictable investment environment.
Overall, the growing participation of women in the Indian cryptocurrency market is a promising trend. While regulatory clarity remains essential for sustainable growth, a comprehensive regulatory environment could benefit all investors, including women, by offering a stable and secure investment space.
- Amidst the surge in India's digital currency sector, a significant portion of users are female, with a 43.24% increase in female crypto enthusiasts reported in Q1 2020.
- Major crypto banks like Cashaa, Bank of Hodlers, and Oropocket have a higher percentage of women users compared to cryptocurrency exchanges, according to a survey by Bit2Buzz.
- Cryptocurrency trading has seen an increase in India due to the lockdown caused by Covid-19, fueling curiosity and investment in digital assets.
- Despite rumors of a potential ban, the Indian government's stance on cryptocurrency regulation remains uncertain, with regulations like the Finance Act, 2022, introducing the concept of "Virtual Digital Assets" (VDAs) and a 30% tax on crypto gains.
- A clear regulatory framework could potentially boost the engagement of women in crypto trading, offering a safer and more predictable investment environment, while the current regulatory uncertainty might deter overall participation and increase legal and financial risks.
