India's crazy crypto year; startups to lead wage hikes in 2022

This was the year that India truly went crypto mad. As the price of Bitcoin went through the roof, millions of Indians dove headlong into crypto, turning the country into one of the world’s fastest growing markets for these digital assets. Meanwhile, the government twice came close to introducing a bill that would ban “all private cryptocurrencies” before twice backing out.

Defining moments in India's crypto saga this year.
India has a weird relationship with cryptocurrencies. The government was twice set to introduce a crypto bill seeking to ban “all private cryptocurrencies” this year before backing out.

Meanwhile, demand for these digital assets has exploded across the country. India’s crypto market grew 641% from July 2020 to June 2021, helping turn a region spanning central and southern Asia and Oceania into one of the world’s fastest-growing cryptocurrency markets, according to a Chainalysis report from October.

■ The crypto bill, take 1: In January, a Lok Sabha bulletin said the government would introduce a bill in the budget session of Parliament that would ban “all private cryptocurrencies” and set up a framework to create an official digital currency to be issued by the Reserve Bank of India. But in the end the bill is not tabled.

■ Don’t ban, regulate: In March, cryptocurrency players represented by industry body Internet and Mobile Association of India (IAMAI) appealed to the government not to ban cryptocurrencies, proposing instead to develop mechanisms to regulate the ecosystem.

■ Dogecoin mania: In May, Dogecoin mania reached Indian cryptocurrency exchanges. They witnessed record-breaking trading volumes of Dogecoin and a massive surge in traffic. Binance-owned WazirX's Doge/INR trading slowed its entire system.

■ Crypto bill, take 2: In November, the government once again appeared likely to introduce a bill on cryptocurrencies during the winter session of Parliament beginning November 29. But the bill was delayed again as the government was reportedly considering changes to the proposed framework. Only one thing’s for sure at this point – that India’s wait for crypto rules will continue into 2022.

India levels-up on crypto: Meanwhile Nischal Shetty, chief executive of crypto exchange Wazir X told us that India’s cryptocurrency ecosystem has levelled up in every aspect this year. He was referring to the number of startups that have been founded, the capital raised, the discussions around a possible cryptocurrency policy framework, and retail investor adoption in the country.