2021 triggered a whole lot of hype regarding the possibility of a crypto-regulatory bill in India. However, 31 December came and went without the long-awaited bill seeing the light of the Parliament.
While many might expect Indian crypto-investors to be bullish on crypto-legislation, data shows that opposition towards the proposed bill comes from an unexpected section of the population.
A lot of smoke, but no fire?
As 2022 opens to price falls and market fear, the Indian media reported that actual crypto holders might be less keen on the bill than their counterparts without crypto. While 36% of urban Indians aren’t happy about the crypto-bill, the survey of 1,225 people by the poll website YouGov reported,
“Data shows that opposition towards the “Cryptocurrency and Regulation of Official Digital Currency Bill 2021” is higher among those who own crypto compared to those who do not (52% vs 28%).”
According to YouGov, Indian crypto-holders are also worried about being penalized with taxes, getting hit with a ban, or losing the money they invested.
Glass half-empty for crypto-holders
It’s natural for traders to be suspicious. After all, 2021 brought in rumours of multiple crypto-bans. This, along with the 4 December price crash, and a lack of transparency from the government regarding the contents of the crypto-bill triggered a surge of panic selling.
So, what are Indian investors planning to do from here on? According to the YouGov poll,
“Thinking about their future investments, more than half (51%) of current crypto owners said they will wait for the market to stabilize before taking a decision.”
However, it’s worth noting that the data was collected before Bitcoin crashed below $43,000 at press time.
Take me out… wait, not that way
The Indian crypto-scene saw off 2021 with the Binance-owned WazirX exchange being investigated for allegedly evading goods and services [GST] taxes. The amount was calculated to be worth hundreds of millions of rupees.
WazirX has since responded to the incident and denied intentions of evading taxes. Furthermore, a spokesperson claimed that the company had paid “additional GST in order to be cooperative and compliant.”
As regulators take note of India’s burgeoning crypto-scene, investors will undoubtedly want to know whether such crackdowns will become commonplace in 2022.