Summary of this article
93 Per cent investors support regulation, half prefer dedicated crypto regulator.
High taxes deter investors, long-term wealth creation drives interest.
YouTube dominates learning, many back crypto education in college curricula.
Cryptocurrency is gaining popularity in India, even as investors continue to assess its benefits and challenges within the current financial landscape. A recent survey titled What India Thinks: Crypto Regulation, Taxation & Investment Trends conducted by Mudrex, a crypto investment platform, reveals trends related to crypto rules in India, taxation, and investment patterns in cryptocurrency.
The study, which included responses from over 9,000 people of diverse ages, income levels, occupations, and locations, shows strong support for regulatory clarity and a growing interest in long-term crypto investment.
Crypto Taxes and Investment Trends
According to the survey, 93 per cent of the respondents' support cryptocurrency regulation. Of these, 56 per cent preferred comprehensive rules, 24 per cent favoured lighter oversight, and 13 per cent wanted regulation limited to taxation. Additionally, half of the participants expressed support for a dedicated crypto regulator.
Taxation continues to be a main concern for Indian crypto investors. A majority of respondents, about 84 per cent, viewed current crypto taxes as disproportionate compared to other asset classes. The 30 per cent tax on gains was cited as the main issue, with 12 per cent of respondents expressing concern about the inability to offset losses, another 12 per cent worried about fraud, 7 per cent highlighted problems with the levy of one per cent Tax Deducted at Source (TDS) and three per cent cited challenges related to exchange fees.
The survey also looked at how people approach cryptocurrency investments. Around 64 per cent of respondents see crypto as a tool for long-term wealth creation. As much as 12 per cent of the respondents cited curiosity as a reason for investing in cryptocurrency. Other respondents cited attractive short-term returns and the ability to use crypto investments as a hedge against inflation. Almost nine out of ten participants said they would consider increasing their crypto investments if government policies were clearer, with 55 per cent strongly agreeing and 35 per cent adding that tax reductions would encourage more investment.
How Indians Learn About and View Crypto
When it comes to staying informed about cryptocurrency, YouTube emerges as the leading source for 43 per cent of respondents. Additional sources of information reported by participants were news media at 19 per cent, guidance from friends and family at 15 per cent, and social platforms such as X at 14 per cent. In terms of education, 77 per cent supported adding cryptocurrency and blockchain to Indian college curricula, while 12 per cent suggested that it should not be added to the curricula until the usage is more widespread.
The survey also reflected perceptions of India's adoption of cryptocurrency and Web3 technologies. As many as 78 per cent of respondents felt India is behind in embracing these technologies, while 12 per cent agreed with the government's cautious approach. The survey also emphasised the political significance of crypto, with 67 per cent of respondents saying they would be very likely to vote for a party that supports crypto, 24 per cent of the respondents saying that they are somewhat likely to vote for a pro-crypto party and 9 per cent indicating that crypto policy would not affect their voting decisions.
Edul Patel, CEO and co-founder of Mudrex, stated that India has the talent, scale, and interest to play a leading role in the global digital asset market. He added, "But to get there, regulation must evolve into clarity. The survey indicates that investors are not against rules; they're against uncertainty. Clear regulation will give investors the confidence to participate."
