Young Indians Adopting Crypto Despite Harsh Taxes

As a researcher who has spent considerable time immersed in India’s vibrant digital landscape, I find it fascinating to observe the country’s leading position in global crypto adoption. My own interactions with India’s tech-savvy youth, who are as comfortable with blockchain as they are with their smartphones, have given me a unique perspective on this phenomenon.


Based on Chainalysis reports, it’s been noted that India leads the way in global cryptocurrency adoption for two years running, highlighting the nation’s strong involvement with digital currencies.

The rapid acceptance of new technologies in India is primarily fueled by its tech-savvy youth population. Given that more than half of the country’s residents are under 25 years old, it boasts a demographic predisposed to digital advancements. It’s projected that approximately 100 million Indians own cryptocurrencies, a number significantly influenced by high smartphone ownership and affordable internet connectivity.

A Heavy Tax Burden

Nevertheless, a high tax burden has come with its own set of problems. For instance, a 30% tax rate combined with a 1% Tax Deducted at Source (TDS) has discouraged frequent trading and even pushed some investors towards offshore tax systems. A study conducted by the Esya Centre indicates that approximately $3.8 billion in trading volume was moved from domestic to foreign cryptocurrency exchanges, underscoring the difficulties faced by the local market.

In spite of these obstacles, India’s cryptocurrency market continues to show strength. Local platforms like ZebPay have created smooth systems for converting fiat currency into cryptocurrencies, making transactions more accessible. Additionally, the government’s interaction with the crypto sector is progressing. The Financial Intelligence Unit has given regulatory approvals to significant exchanges such as Binance and KuCoin, suggesting a possible move towards a more welcoming regulatory atmosphere.

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2024-11-29 12:06