– Asian countries have seen a surge in cryptocurrency adoption following the 2020 COVID-19 pandemic.
– The International Monetary Fund (IMF) found that the general cryptocurrency market and the Asian equities market now share a strong correlation that was non-existent before the pandemic.
– The IMF found that the cascading impact of the pandemic in Asia led to a growing acceptance of crypto-related platforms and investment vehicles.
– Furthermore, the adoption rate of cryptocurrency by retail and institutional investors in Asia who already had positions in the equity and crypto market before the pandemic grew significantly.
– According to IMF, as Asian investors increased their presence in the cryptocurrency market during the pandemic, the regions equity markets and cryptocurrencies, including Bitcoin [BTC] and Ethereum [ETH], developed a stronger correlation in their performances.
– The Indian government has taken a rather harsh approach to tax cryptocurrency activities in the country.
– In March, the Indian parliament passed a controversial bill into law that levied a capital gains tax of 30% on cryptocurrency transactions in the country.
– Since July, a 1% tax deducted at source (TDS) has been levied on every cryptocurrency transaction in the country.