How Big Is India's Cryptocurrency Market? Challenges Ahead In 2022

The Crypto market is booming and so is the number of investors across the world. The surge is high enough that it is now a point of discussion among the non-Crypto enthusiast. According to Chainalysis's recently published report on Crypto, there is an 880% increase in worldwide crypto adoption, fueled by peer-to-peer (P2P) trade and usage in emerging countries like Africa. According to the report's findings, Vietnam topped the Crypto adoption index, followed by India and Pakistan. African countries account for six of the top 20 countries in the ranking. The report also indicates how Crypto's adaptation is increasing across the world.

Crypto Market – Global

Three criteria make up the Global Crypto Adoption Index. They rate all 154 nations based on those three parameters, then take the geometric mean of each country's rating over all three indicators and normalize that final figure on a scale of 0 to 1 to give each country a score that determines the overall rankings. The higher the rank, the closer the country's ultimate score is to one. Talking about the recent development, China, previously the world's biggest Crypto market, in September, banned all Crypto activities in the country.

Cryptocurrency Market

Country	Index Score	Overall Index Ranking
Vietnam	1	1
India	0.37	2
Pakistan	0.36	3
Ukraine	0.29	4
Kenya	0.28	5

Crypto Market - India

Talking about the Crypto owners, India outperforms in Crypto Ownership. As of now, India has more than 10.07 Cr. Crypto owners. This number might look small compared to India's population, but when it is compared to the number of active clients to India's top brokers, it is 5 times combined. This shows how big is India's crypto market and how much potential it holds.

Understand this with the data below:

Stock Broker	Active client	Market Share
Zeroda Broking Ltd.	54 Lakh	18.33%
RKSV Securities India Private Ltd. (Upstox)	42 Lakh	14.24%
Angel Broking Ltd (AngelOne)	28 Lakh	9.56%
Nextbillion Technology Pvt Ltd. (Groww)	26 Lakh	8.95%
ICICI Securities	26 Lakh	8.70%

Crypto Exchange

 

India is home to a number of Crypto exchanges such as WazirX, CoinSwitch Kuber, CoinDCX and so on. This year, despite ongoing regulatory uncertainty and market volatility, WazirX, India's largest cryptocurrency exchange, had record-breaking activity when investors from smaller cities in the South Asian country rode on the digital-asset tsunami.

Challenges Ahead 2022

The future of the Crypto market in India is uncertain and a lot will be determined by the government policy that the Government of India is planning to present in parliament in 2022. The Indian government is working on laws to restrict cryptocurrency use and trade. The Cryptocurrency and Regulation of Official Digital Currency Bill were supposed to be introduced during Parliament's winter session, but the disagreement over agricultural bills stopped it. Although the bill was not debated in Parliament, investor interest has not waned. Cryptocurrencies, on the other hand, are a relatively new investment class with limited data for fundamental research.