- India attracted more foreign investments for crypto sector in 2021 first half than 2020.
- Uneven growth may be because of uncertain regulatory environment in the country.
- India may give clear directions regarding crypto-assets soon.
In an interesting turn of events, India has attracted more foreign investments for its crypto startups in the first half of 2021 than it did last year.
Between January and June this year, India has received a total investment of $99.7 million for its crypto industry. This amount is higher than the total received by the sector ($95.4 million) in 2020. The data was reported by Economic Times using insights platform Tracxn.
Not just this, but compared to investment in the industry in 2016 ($6.3 million) and 2017 ($6.4 million) these amounts show a monumental jump. That being said, investment in India’s crypto hasn’t been on a stable growth trajectory. In 2018, $49.6 million made its way to the developing country’s digital asset market. Dramatically, this fell to just $12.3 million in 2019.
It is likely that the uneven growth pattern may be emerging from global market trends. However local restrictions and regulatory uncertainties are also to blame.
The growth in India’s crypto sector is interesting because it happened in spite of the government’s initial unfriendly crypto stance. Recently the country has made the news again and again for being unsure of its policy on crypto. Crypto startups in the country, such as WazirX have constantly struggled because of inconsistent rules.
Still, the industry has, in fact, emerged as a growing force. Also, there is an expectation of the Indian government finally giving clear direction for the classification of Bitcoin and other cryptocurrencies as an asset class.
There is no doubt that India can go exceedingly well as a crypto supporter. It can also push the industry towards further growth if given the right regulatory climate. Hoping for the same, top crypto exchanges are actively trying to look for a market entrance.