Despite its thriving tech economy and internet-savvy population, India lags behind its neighbour Pakistan in the fight for crypto-friendliness. While Pakistan is ranked 10th on the list of the most crypto-friendly countries, India is only one spot behind, at 11th.
This coincides with a global boom in bitcoin ownership. According to Crypto.com, the number of cryptocurrency owners will increase from 432 million to 580 million in 2023 alone, indicating the growing popularity of this digital asset.
While some countries have intentionally blocked technical breakthroughs, others have welcomed them, encouraging the establishment of this new industry. Argentina leads the pack as the most crypto-friendly country, providing ideal conditions for miners and merchants. The United States follows closely behind, with a sizable population actively investing in cryptocurrencies.
However, the high mining cost of $87,885 per bitcoin represents a substantial hurdle for US miners. Despite this and other government-imposed regulatory impediments, the United States remains a hotspot for crypto aficionados, accounting for a sizable chunk of traffic on prominent cryptocurrency sites.
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Here’s a brief look at the top ten most cryptocurrency-friendly countries:
1- Argentina
2- The United States
3- Colombia
4- Ukraine
5- UAE
6- Vietnam
7- Turkey
8- Canada
9- Singapore
10- Pakistan
India, on the other hand, paints an entirely different picture. Cryptocurrencies exist in a regulatory grey area, with no central authority monitoring their usage as a legitimate means of payment. While Pakistan currently has no rules in place, India’s 2022 national budget includes a 30% tax on crypto earnings and a 1% tax withheld at source, signalling a more cautious stance.
The global increase in crypto ownership reflects a growing interest in this digital currency. While some countries actively embrace the technology revolution, others are enacting rules owing to security worries about cryptocurrency. It remains to be seen how India will handle this shifting scenario and whether it will join the crypto wave.
There are several risks associated with using cryptocurrencies in Pakistan, and people should be informed of these before participating in any crypto-related activities. The main risks are as follows:
- High Price Volatility:
It is common for cryptocurrencies to undergo dramatic price swings and instability. These investments are risky since their value might fluctuate quickly. Most price movement is driven by speculation, which increases volatility.
- Exchange Failure or Closure:
Exchanges for virtual currencies may close or fail for a number of reasons. An exchange may close as a result of financial instability, technical problems, or regulatory actions. Users might then be unable to access the money they have stored on the platform.
- Security and Hacking Risks:
Services like wallets and cryptocurrency exchanges are susceptible to security lapses and hacking. Exchanges have been breached in several parts of the world, costing users a great deal of money. The risks associated with storing money in online wallets or exchanges are present.
People in Pakistan should use caution when interacting with cryptocurrencies. It’s critical to keep up with legal developments and base judgements on the risks and uncertainties that are currently in place.