Key Takeaways:
- India’s crypto exchange traffic has outpaced the 2022 results.
- The government policy regarding crypto assets is not yet developed.
- India leads the East in not only crypto involvement but economic growth as well.
YEREVAN (CoinChapter.com) – 2022 was a rough year for crypto, with consecutive crises wiping $1.5 trillion off the total digital asset market cap. Following the bearish market, the global usage of crypto exchanges in Q1, 2023 fell in several countries, but India wasn’t one of them.
India Returns to Crypto Exchanges
According to the research platform K33, the global crypto exchange traffic has fallen 25% since August 2022. The US cut its crypto exchange traffic by $50 million, while South Korean and Russian usage fell by $20 million and $15 million, respectively.
Among the top 10 most active countries in crypto, measured by website traffic, India is the clear outlier, growing by 28% since August.
mentioned K33.
As seen in the chart above, India defied the trend among the top 10 countries and saw a rise in crypto exchange traffic by approximately $10 million since Q3 2022. Additionally, according to Forbes, the growing interest in the digital asset sector has led to an increase in the number of crypto exchanges in India.
India’s Hardline Crypto Taxation
In March 2023, the government of India scheduled the introduction of new cryptocurrency regulations during the Winter Session of Parliament. This was the second time the Cryptocurrency bill was listed but delayed. The first time it happened was during the Budget Session of Parliament in 2021.
The Reserve Bank Of India Governor and various government spokespersons, including the Finance Minister of the country, have made various statements that prompt the illegality of cryptocurrency in India. Still, there is no specific ban on it.
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They are unregulated, but according to the recent Union Budget 2022, the government of India announced a 30% tax on gains from cryptocurrencies and a 1% tax deducted at source.
Meanwhile, the rise of activity in the cryptocurrency sector reflects the growth in India’s economy and its influence in the region.
Global Influence on the Rise
According to Herbert Wulf, a Senior Fellow at BICC and an Adjunct Senior Researcher at the Institute for Development and Peace, India has seen “phenomenal economic growth,” which, with some fluctuations, has averaged over 7% annually since the end of the 2000s.
With 8.7% growth in 2021, India has advanced to being the fifth-largest economic power in the world after the US, China, Japan, and Germany. […] India has now assumed the presidency of the G20 for 2023 and thus has the opportunity to shape the G20 agenda.
commented the expert.
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Wulf also saw 2023 as a “window” for India to expand its global impact and develop its economy further, given the instability in Europe and the potentially explosive relationship between China and Taiwan. Moreover, the Indian government has made it clear that it has no intention to align under Western dominance.
The statistics of gross domestic product (GDP) confirm Wulf’s narrative. The vital measure of economic health went from over $1.7 trillion in 2010 to over $2.6 trillion in 2020. The predicted GDP for 2023 stood around $3.5 trillion, double the 2010 results.
