With uncertainty in the Indian cryptocurrency sector for a few years, good news has finally arrived with an investment of over $638 million making its way to various crypto & blockchain companies.
Investment has been on the rise, as there are lots of developments happening in India in terms of providing legal status to the crypto industry.
A mere 18.87 million was invested in crypto in 2016, 32.29 million in 2017, 81.33 million in 2018, and 126.91 million in 2019, but the COVID pandemic in 2020 led to a drastic drop to 37.56 million.
In 2021, investments in the crypto sector grew by over 641% from July 2020 to June 2021, according to the Chainalysis report from October 2021.
India’s finance ministry has been speaking to stakeholders, that includes crypto exchanges, crypto developers, experts in understanding how crypto can be regulated and brought under the legal ambit by meeting concerns of the Reserve Bank of India (RBI) that has been always mulling for a complete ban on cryptocurrency.
Even since the first circular banning crypto trading by using banks and financial institutions way back in 2018, nothing much has changed what RBI believes about crypto.
However, the Indian finance ministry has taken a different approach, as it believes that crypto might be taken under legal ambit under the asset class. Each crypto project can be dealt with separately under use cases that can be useful for citizens as it is based on decentralized technology.
The finance ministry has delayed the passing of the Cryptocurrency Bill twice in 2021, as deliberations are still on and the government doesn’t want to rush to pass the bill.
Recently, the Indian Prime Minister, Narendra Modi has called for global regulations in dealing with cryptocurrency, as globally the crypto industry has become a $2 trillion market.
Though many countries have banned crypto, there are many nations that still see a lot of positivity in crypto.
Now, let’s come back to crypto investment in India.
India is a very huge market for the crypto sector with over 1.35 billion people and till today over 15 million already trading in cryptocurrencies, India can become a leader in the crypto industry, if it plays its cards right and allows the crypto ecosystem to work.
Today, India is the leader in providing workforce to crypto projects globally and even in India, crypto experts are in great demand.
The government believes that India can become a provider of a global workforce, as India is already a global leader in software technologies.
There are many crypto exchanges that are catering to Indian users, many are from smaller cities and even residing in rural areas. As India has managed to provide internet data in interior parts of the country, crypto can be a game-changer in financial inclusion, if brought under the legal fold.
Hundreds of projects are already working in India on various use cases, like supply chain, food traceability, transportation, education, land registry, and others.
To name one, Polygon (MATIC), which was founded by Indians is one of the biggest crypto companies with over $15.36 billion in market capitalization.
Global crypto investments
Not only in India, but global investment in crypto projects has also been on the rise. Over $30 billion has been pumped into the crypto industry in 2021, more than in all previous years combined.
As crypto is becoming the next big thing, it has been attracting investors which are always looking for investing in new technologies. Many crypto exchanges, crypto projects dealing with digital collectibles, and crypto-enabled gaming are now securing multimillion- and even billion-dollar investments.
After non-fungible assets (NFTs) were very popular in 2021 and have gained lots of traction as well as investments, 2022 is the year for Metaverse. Metaverse is a blanket name for a part of the internet made up of a handful of platforms that include digital entertainment and business opportunities that have raised millions in just a few months.
Looking at this trend and the government’s positive approach towards crypto can bring in more investments in 2022 and this year can be a game-changer for all the people associated in this crypto space.