2020 was a stellar year for cryptocurrencies in India, gaining momentum especially in India. All-time high, Price Pumps, FOMO, and Crypto to the Moon are some phrases from the 2017 crypto bull run, which reappeared. Market Cap and volumes showed impressive growth and active users and wallet holders were on a steep hike.
Being a roller coaster year for all the nations, we have seen many ups and downs this year. But, the COVID-19 pandemic has also encouraged investors to start investing in cryptocurrencies in India, leaving the gold behind.
Indian cryptocurrency exchanges and regulations a hot topic
People looking for the security of their cryptocurrency holdings and new investors looking for gains were concerned about the regulations, until in favor of the Crypto Exchange. Mass Adoption of Cryptocurrencies in India was a hot topic post some relief and the whole community came together hoping for a regulated Bitcoin Market in India that offers great functionality with a user-friendly and secured mechanism.
BuyUcoin was not alone in this, various stakeholders, journalists and crypto exchanges, and government organizations came forward to participate in the Sandbox by BuyUcoin.
Along with participation in a regulated crypto market, new investors also showed huge interest in Bitcoin and other cryptocurrencies in India like never before. According to data from CoinGecko, the average daily traded volume across the top four Indian cryptocurrency exchanges including BuyUcoin stood at over $22.4 million as of December 16, 2020, compared to a little under $4.5 million as of March 1, 2020.
Spending millions daily trading on cryptocurrencies in India
Retail investors aged between 25 and 40 are spending millions on trading in cryptocurrencies in India every day, according to two of the top exchanges in the country. Experts expect the number of retail investors to grow even faster in 2021 as Bitcoin, the best known digital currency has hit an all-time high.
The investors are individuals, in the age group of 25 to 40 years. 25 is the age when they start their professional life. A lot of these young people, who understand technology, choose crypto as their first asset class. Because a lot of these people believe in the power of technology.
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Investment in cryptocurrencies in India is neither explicitly legalized nor prohibited. An RBI ban on crypto payments in 2018 was overturned by the Supreme Court in March 2020.
India has seen a significant increase in cryptocurrency trading volumes in the year 2020 on domestic crypto exchanges after the Supreme Court, in March, quashed a 2018 circular by the Reserve Bank of India (RBI) which had barred Indian banks from providing services to crypto companies.
With the price of the world’s leading cryptocurrency Bitcoin continuing to surge during December, the Indian government is currently weighing a proposal for levying an 18% goods and services tax (GST) on Bitcoin transactions.
The Central Economic Intelligence Bureau (CEIB), an arm of the finance ministry, has made the proposal to the Central Board of Indirect Taxes and Customs (CBIC). The CEIB proposal says that the government could potentially earn INR 7,200 Cr annually by levying GST on the margins made in the trading of bitcoins alone, just one class of cryptocurrencies.
UNICAS Crypto Bank opens in India
London-based crypto-focussed Neobank Cashaa has signed a joint venture with Jaipur-based United Multistate Credit Cooperative Society to launch what it claims to be the world’s first crypto bank called Unicas.
The new company will allow individuals to transact in cryptocurrency and fiat from one account. The joint venture will allow Cashaa access to United’s regulatory licenses, physical branches, and overall banking Infrastructure.
Unicas is initially opening its services online and through 14 branches across Delhi NCR, Rajasthan, and Gujarat by January 2021, and plans to rapidly expand to 100 branches by the end of 2022.
Crypto forecast for 2021
India is still in the adoption stage and not in acceptance mode as volumes are low compared to some of the developed nations. However, there are encouraging signs as the numbers are growing and several smaller exchanges came up this year in many states.
In this year, not just Bitcoin, other cryptocurrencies in India like Ethereum, Tether, and Litecoin also delivered a strong performance. The encouraging trend towards the adoption of cryptocurrency in 2020 by Indians has also prompted exchanges to chalk down aggressive growth plans for 2021.
The March 2020 Supreme Court judgment was in favor of crypto business, as SC ruling said the banks to work with crypto exchanges. So, it is evident that the upcoming year will also be an amazing year for the crypto industry in India.
In 2021, we can expect even greater demand from institutional investors, hedge funds, family offices, and retail investors as well. While cryptocurrencies in India outperformed all other asset classes in 2020, the coming year may shed some light if adoption turns into acceptance despite indifferent postures from the regulatory authorities.
This new year, we wish you new beginnings and high earnings from BuyUcoin!