According to a report by Chainanalysis, India is the second largest cryptocurrency user in the world
The popularity of the cryptocurrency shows no signs of slowing down. Now, data suggests that investors in India have also embraced cryptocurrencies. According to a new report by Chainanalysis, the boom in cryptocurrencies in India has led to a tremendous increase in the number of users in the country. The report said that in 2021, India recorded the second largest number of cryptocurrency users worldwide. report goodReleased in 2021, it shows that India is second only to Vietnam in the number of cryptocurrency users.
In addition to the increase in the number of cryptocurrency users, the report from the industry research firm also shows that the country’s crypto market has grown by 641 percent over the year. While Pakistan comes third in terms of the number of cryptocurrency users after Vietnam and India, it saw the highest growth of 711 percent. The report also noted that “while India, Vietnam, and Pakistan have high levels of grassroots cryptocurrency adoption, they differ significantly in terms of raw transaction value.”
Additionally, the report cited possible reasons behind the increase in the number of users based on comments from industry experts. For example, Joel John, the principal of Laserprime, said that it may be the ease of crypto investing that has encouraged more people to warm to it. “Investment disparity in India is a long, painful process that requires you to sign a lot of documents. It takes around three to four days. Investing in crypto takes less than an hour, Joel John was quoted as saying.
Meanwhile, Krishna Sriram, managing director of Quantstamp, was quoted in the report as, “Many Indian developers, fund analysts and independent freelancers working for foreign employers have started requesting to be paid in cryptocurrency.”
The increase in the number of cryptocurrency users comes at a time when Finance Minister Nirmala Sitharaman has said that the government Will soon bring clarity on formalizing cryptocurrency, The government has announced the imposition of tax on virtual digital assets in the budget of 2022-23.
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