US President Donald Trump signed the recently passed stablecoin bill into law on Friday — vowing that the crypto industry was “going to be stronger and bigger and better than ever before”. Bitcoin set new records this week as public sentiment improves steadily after a tariff-induced selloff earlier this year. Anticipation about a sustained bull run has also seeped into the Indian markets with a growing number of high-net-worth individuals turning to digital currencies.
“HNI clients are jumping into the crypto rally. If you see, Bitcoin ETFs are at an all-time high, with capital inflows of $70 billion going into it. The value of those investments at the same time has doubled to more than $150 billion in just 18 months of launch. Even Gold ETFs haven’t been able to give such an yield in 20 years,” Mudrex CEO Edul Patel told Moneycontrol.
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The platform reportedly saw HNI trading volume jump 30% within a week to hit $10 million. Meanwhile CoinDCX saw the average per trade size of HNIs rise nearly 25% to 30% in July — from about Rs 5 lakh in June. The crypto trading platofrm has seen nearly 50% of its total trading volumes being driven by over 3,500 HNIs, family offices and institutions, with an average investment of more than Rs 50 lakh in monthly trading volume on spot markets.
Exchanges such as CoinDCX, CoinSwitch, Mudrex, and ZebPay have seen a massive surge in Indian family office participation in recent days with many gravitating towards towards long-standing blue-chip tokens such as Bitcoin and Ethereum. According to the publication, Solana and Ripple have also incurred HNI interest across exchanges while memecoins such as Doge, PEPE, and Shiba Inu round off the list.
Current crypto regulations in India
India legalised trading and holding of cryptocurrencies in March 2020 with certain caveats and a hefty 30% tax on profits from sale, trading, or spending. An additional 1% Tax Deducted at Source also applies on transactions exceeding Rs 50,000 per financial year. The government treats these online currencies as ‘Virtual Digital Assets’ under the Income Tax Act and it is not recognised as legal tender. Unregistered exchanges and wallets remain prohibited and KYC registration is mandatory for those transacting in cryptocurrencies.
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