The past years have been very important for the cryptocurrency market. Digital assets have managed to become popular all around the world, with numerous crypto exchanges being established very frequently.
Year 2021 was especially successful for the cryptocurrency industry. The majority of the crypto assets had an amazing performance throughout the year.
In fact, some of the digital coins even managed to hit all-time high several times throughout the year. Such a great performance all round the year has attracted even more people to the market. As people started seeing new opportunities for making profits in the market, they have started looking for ways to become part of the crypto industry.
However, not everything that happened in 2021 was good. Several negative developments took place as well, such as China banning all types of crypto activities in the country. But, at the same time, other countries decided to take a crypto-friendly stance. For example, El Salvador went as far as adopting BTC as a legal tender.
Also, there are some countries that are still failing to choose where to stand when it comes to the crypto market. The Indian government, among others, announced that it was working on a crypto bill a very long time ago. However, even today, the country is yet to adopt crypto regulations, which makes it quite hard for local traders to take full advantage of the market.
The founder of India’s one of the top crypto exchanges, WazirX, has recently noted that 2021 was truly an exceptional year for the market, naming NFT space as one of the most important developments of 2021.
India’s crypto approach
While India’s government fails to adopt a regulatory framework for the crypto industry, the nation still remains the second-highest country in terms of crypto adoption. In fact, the majority of the experts believe that throughout 2022 India might become a leading country in terms of decentralized industries, however, this could only happen if the government chose a progressive regulatory stance for the crypto industry.
The founder of WazirX has noted that the steps taken by the Government of India will have a huge impact on the future development of DeFi and DAO industries in the country. Whatever the case maybe, one thing is clear – the adoption of cryptocurrency is increasing very fast in India.
The country has seen a massive jump in the number of active crypto traders in 2021, and the trend is expected to continue the same in 2022 as well. The very important thing about the crypto market in India is that the interest in digital assets is very high in different parts of the country, including rural areas. Also, people of all ages tend to have a huge interest in the crypto market.
According to the market experts, once India manages to adopt regulatory guidelines for the crypto industry, it should be expected for the country to continue attracting a wider audience of investors. Also, many believe that this will make the market more competitive and if the regulations are progressive, there will be a lot of room for future innovation.
What should be expected?
There are many reasons why the crypto industry continues to be so popular in India. One of the main reasons is the fact that it is very easy to access for traders of all different backgrounds and interests.
The majority of the exchanges in India are focused on their individual clients, which makes it easier for everyone to find something that they want. In fact, many of the traders don’t even have to do anything on their own, they can simply use a bitcoin automated trading bot, which can analyze the market for them.
Using trading robots has become very popular recently, as it allows traders to automate the whole process of cryptocurrency trading and leaves them more free time.
According to the CEO of Krystal.Ai, Aseesh Chanda, the cryptocurrency trading market is very much likely to continue growing in India in the following year. Granted, if the government adopts a favorable regulatory framework. While talking about the crypto market in India, Chanda advised crypto traders to adopt a well-developed risk management strategy and avoid FOMO.
The Government of India has long been working on preparing a special bill. Named crypto bill, it would regulate the whole cryptocurrency market in the country. The cryptocurrency bill was to be presented to the Parliament during the Winter session, back in November, 2021.
However, at the beginning of November, it was announced that the bill had to be worked on further before presenting it to Parliament. As a result, it was decided for the bill to be heard during the February budget hearings.
While many countries have already chosen different types of stances for regulating the cryptocurrency trading market, India is lagging behind. However, it should be noted that the approach of India has gone through a significant rethink, which makes some believe that the new regulations will very much be crypto-friendly.
According to the research done by Chainalysis, there are over 15 million active crypto investors in India, which is a huge number and makes India the second-largest country when it comes to global crypto adoption.