A STUDY ON AWARENESS AND TAXATION ON

CRYPTOCURRENCIES

DEPARTMENT OF ACCOUNTING AND FINANCE

SUBMITTED TO

RAMSHETH THAKUR COLLEGE OF COMMERCE AND

SCIENCE, KHARGHAR
DIST RAIGARH
For the Assessment Year 2022 - 2023

BY

Name : Karan V. Wankhede

Class : TY BAF (B)
Roll no. 37
Subject: Project Work

Under the guidance of

H.O.D of BAF Dept. PRAVAR SHARMA
 Index
SR.NO CHAPTER PAGE.NO

INTRODUCTION 3 – 11
1.

2. REVIEW OF LITERATURE 12 – 13

3. RESEARCH METHODOLOGY 14 – 15

4. DATA ANALYSIS & INTERPRETATIONS 16 – 28

5. CONCLUSION 29 – 30

FINDINGS AND SUGGESTION 31 – 33

6. 6.1: FINDING 32
32
6.2: SUGGESTION
32 – 33
6.3: REFERENCE

7. APPENDIX 34 - 36

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1. INTRODUCTION

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1.1 Introduction to Crypto currencies:
The concept of crypto currencies was first introduced in an original publication by Satoshi
Nakamoto in 2008 paper Bitcoin: A Peer to Peer Electronic Cash Systems. Defined simply as
currencies in a digital format, crypto currencies were intended to be operationalised as a
means of electronic payment. But unlike the equally revolutionary movement of funds
electronically,between traditional financial institutions or for payment purposes, this form of
electronic transfer would be more secure and fraud-proof, and would not need the role of
trusted intermediaries like banks. In fact, most of these currencies would be free from
deflationary forces and from the control of a central institution such as a central bank or
national government and their transfer would eliminate roadblocks that would otherwise arise
from the exchange of physical currency.

Proof of work: Decentralization was a key part of the original vision for crypto currencies. To
accomplish that, there needed to be a way to confirm transactions without the involvement of
financial institutions. The first solution to this challenge was called proof of work.

Proof of work is a form of adding new blocks of transactions to a crypto currency's block
chain. The work, in this case, is generating a hash (a long string of characters) that matches
the target hash for the current block. 

Example: In 1 block of bitcoin there are 6.25 Bitcoin in 2020. As compared to 50 bitcoins in
2009.SHA-256 algorithm is used to solve which requires Windows 10(64) bit computer.
Average time required is 10 min to solve a block.

Proof of Stake: As Proof of work was the first crypto currency consensus mechanism. An
alternative, proof of stake, came out in 2012 with the launch of Peer coin (PPC). It chooses
transaction validators based on how many coins they've staked, or locked up, to the network.
Because proof of stake doesn't require nearly as much computing power as proof of work, it's
more scalable. It can process transactions more quickly for lower fees and with less energy
usage, making proof-of-stake crypto currencies more environmentally friendly. It's also much
easier to start staking crypto than mining since there's no expensive hardware required.
However, proof of work is more proven from a security perspective. One potential problem
with proof of stake is that parties with large crypto holdings could have too much power,
which is an issue that proof of work doesn't have.
If a stake owner (validator) is chosen to validate a new group of transactions, they’ll be
rewarded with crypto currency, potentially in the amount of aggregate transaction fees from
the block of transactions. To discourage fraud, if you are chosen and verify invalid
transactions, you forfeit a part of what you staked.

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 1.2 Blockchain:
A blockchain is a growing list of records contain in 1 block and it is linked to each other
through cryptography. Each block contains a cryptographic hash of the previous block,
a timestamp, and transaction data. Blockchains are typically managed by a peer-to-peer
network for use as a publicly distributed ledger, where nodes are collectively connected to
communicate and validate new blocks. Once a transaction are recorded it cannot be changed
or modified.

Blocks: Blocks hold batches of valid transactions that are hashed and encoded . Each block
includes the cryptographic hash of the prior block in the blockchain, linking the two. The
linked blocks form a chain. This iterative process confirms the integrity of the previous block,
all the way back to the initial block, which is known as the genesis block. Sometimes separate
blocks can be produced concurrently, creating a temporary fork. In addition to a secure hash-
based history, any blockchain has a specified algorithm for scoring different versions of the
history so that one with a higher score can be selected over others. Blocks not selected for
inclusion in the chain are called orphan blocks. There is never an absolute guarantee that any
particular entry will remain in the best version of the history forever. Blockchains are
typically built to add the score of new blocks onto old blocks and are given incentives to
extend with new blocks rather than overwrite old blocks. Therefore, the probability of an
entry becoming superseded decreases exponentially.

Block Time: The block time is the average time it takes for the network to generate one extra
block in the blockchain. Some blockchains create a new block as frequently as every five
seconds. By the time of block completion, the included data becomes verifiable. In crypto
currency, this is practically when the transaction takes place, so a shorter block time means
faster transactions. The block time for Ethereum is set to between 14 and 15 seconds, while
for bitcoin it is on average 10 minutes.
Blockchain analysis:
The analysis of public blockchains has become increasingly important with the .If it is public,
provides anyone who wants access to observe and analyse the chain data, given one has the
know-how. The process of understanding and accessing the flow of crypto has been an issue
for many crypto currencies, crypto-exchanges and banks. The reason for this is accusations of
blockchain enabled crypto currencies enabling illegal dark market trade of drugs, weapons,
money laundering etc. A common belief has been that crypto currency is private and
untraceable, thus leading many actors to use it for illegal purposes. This is changing and now
specialised tech-companies provide blockchain tracking services, making crypto exchanges,
law-enforcement and banks more aware of what is happening with crypto funds
and fiat crypto exchanges. The development, some argue, has led criminals to prioritise use
of new cryptos such as Monero. The question is about public accessibility of blockchain data
and the personal privacy of the very same data. It is a key debate in crypto currency and
ultimately in blockchain.

1.3 Decentralisation:

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By storing data across its peer-to-peer network, the blockchain eliminates a number of risks
that come with data being held centrally. One risk of a lack of a decentralization is a so-called
"51% attack" where a central entity can gain control of more than half of a network and can
manipulate that specific blockchain record at will, allowing double-spending. Peer-to-peer
blockchain networks lack centralized points of vulnerability that computer crackers can
exploit; likewise, it has no central point of failure. Blockchain security methods include the
use of public-key cryptography. A public key is an address on the blockchain. Value tokens
sent across the network are recorded as belonging to that address. A private key is like a
password that gives its owner access to their digital assets or the means to otherwise interact
with the various capabilities that blockchains now support. Data stored on the blockchain is
generally considered incorruptible.  Messages are delivered on a best-effort basis. Mining
nodes validate transactions add them to the block they are building, and then broadcast the
completed block to other nodes.  Blockchains use various time-stamping schemes, such
as proof-of-work, to serialize changes. Alternative consensus methods include proof-of-
stake. Growth of a decentralized blockchain is accompanied by the risk
of centralization because the computer resources required to process larger amounts of data
become more expensive.

Disadvantages of decentralisation
Nikolai Hampton pointed out in Computer world that "There is also no need for a '51 percent'
attack on a private blockchain, as the private blockchain (most likely) already controls 100
percent of all block creation resources. If you could attack or damage the blockchain creation
tools on a private corporate server, you could effectively control 100 percent of their network
and alter transactions however you wished." This has a set of particularly profound adverse
implications during a financial crisis or debt crisis like the financial crisis of 2007–08, where
politically powerful actors may make decisions that favor some groups at the expense of
others, and "the bitcoin blockchain is protected by the massive group mining effort. It's
unlikely that any private blockchain will try to protect records using gigawatts of computing
power — it's time consuming and expensive." He also said, "Within a private blockchain
there is also no 'race'; there's no incentive to use more power or discover blocks faster than
competitors.

1.4 Mining:
It is a process of creating new crypto coins by solving complex mathematical equations.
When a person invests in a cryptocurrency, the details of the investment are entered on a
distributed ledger, called the blockchain. But the process is complete only when a “miner”
verifies the transaction as legitimate. Once that is done, the transaction is locked into the
blockchain for everyone to see and the transaction is complete.

This verification process requires miners to solve complex equations. They are in a race
against each other to solve the problem. Those who do that first are paid a fraction of the
transaction as a fee for their effort. Every successful transaction leads to new coins entering
into circulation.

As said earlier, the computer needed for mining has to have huge processing power. Bitcoin
mining requires speed, the faster the rig is the more a person would be able to mine and

6
resultantly increase their earnings. If the computer is slow, the person may lose out to other
miners. A robust graphics processing unit (GPU) or video card is essential for Bitcoin
mining. Then, the person would need to create a Bitcoin wallet and join a mining pool – a
group of miners who combine their resources to increase their mining power. Miners of the
same pool distribute the profit among themselves. Crypto mining means gaining
cryptocurrencies by solving cryptographic equations through the use of computers. This
process involves validating data blocks and adding transaction records to a public record
(ledger) known as a blockchain.

1.5 Crypto Exchanges:

India has total 15 crypto exchanges, out of which the following are the list of top 5 crypto
exchanges in India:

UnoCoin

Unocoin was founded in 2013 and is the leading Bitcoin exchange in India. It is
backed by investment from the USA and is a regulated company offering low 1% fees which
fall to 0.7% with increased trading volumes. It is a relatively easy exchange platform,
allowing users to buy crypto currency with any Indian bank account.

WazirX

One of Indias most trusted exchange platforms, WazirX was founded in 2018. It
focuses on exchange-escrowed P2P services to enable customers to continue to withdraw
INR. Wazirx follows the KYC norms, has a mobile application for both Android and IOS
users and also claims to provide multiple hundred transactions per second.

Coin DCX

Established in 2018, Indias first cypto exchance Unicorn has solved many problems related to
investing and trading solutions for crypto based financial products for retail and enterprise
customers. It claims to be safest exchanges with a focus on making crypto easily accessible.

Coinswitch Kuber

It received a lot of attention due to its marketing efforts during the Indian Premier League.
Launched in 2017, it has now risen to become one of the top-5 exchanges in India. One of its
most attractive features is that it allows users to trade with as small a sum as ₹100. This
appeals to a lot of new users looking to understand how the crypto market works without
having to sink larger sums into it in the beginning.

Zebpay

Zebpay has also emerged as a popular cryptocurrency exchange, mostly because users say it
has a clean, light and simple user interface. Further, it offers users particular security feature
where users can disable all outgoing transactions with the click of a button. The exchange,
however, has a more limited variety of cryptocurrencies on offer.

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 1.6 Government on Crypto :
In 2013 RBI issued a warning to public about the use and risks of virtual currency to banks,
holders and traders. Banks continued to allow transactions on crypto exchanges, In Feb 2017
RBI issued another circular and by end of 2017, Ministry of Finance and RBI issued a
warning stating that Virtual currencies are not legal tender. On march 2018, All crypto
exchanges were frozen and withdrawals was stopped, which led to a fall in prices. CBDT
stated that black money was converted to cryptos after demonetisation it also created a chain
of black money, which led to a ban on all crypto currencies . But in march 2020, Supreme
Court lifted up the ban, At present there is no ban, In 2021 winter session Govt introduced a
bill regulating crypto currency“ The Crypto currency and Regulation of the Official Digital
Currency Bill 2021”. On 1 Feb 2022, Ministry of Finance announced 30% Direct tax on
Profit and Loss on digital assets and 1% TDS on transaction of digital assets. All crypto
exchanges will be regulated by SEBI or other regulatory board will be formed for controlling
digital currency, this will be further clarified when the Bill will come into force.

1.7 Central Bank Digital Currency (CBDC)

RBI is not in favour of Cryptocurrencies and on the other hand working on developing its
own digital currency on Blockchain technology which will be named as DIGITAL RUPEE.
As announced by the Finance Minister. Nirmala Sitharaman on 1 Feb 2022. It is expected to
launch in the financial year 2022 – 2023.

1.8 Market capital of Crypto in world and in

India
The global market of crypto is around 2 Trillion Dollars, Only 3% of total world population
is holding crypto which is around 300 million users and around 18,000 businesses are
accepting crypto currencies. In India alone there are 100 millions users which is highest in
the world, according to reports in 2021. It also makes India fastest adoption of crypto
currencies in the World.

1.9 Volatility:
As previously observed, the crypto market has seen extreme levels of volatility over the
course of its growth and expansion. Although certain investors would view this trend
positively, there is a large portion of the world's capital that is off-limits to cryptocurrencies
because of their high volatility.

Cryptocurrencies are so volatile for many reasons including:

1 Lack of Intrinsic Value

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2 Lack of Regulatory Framework

3 Lack of Institutional Capital

Many of these are characteristic of immature and newly created markets and should be
resolved over the course of the coming decade as the market matures. But until these issues
are resolved, volatility will continue to play major role in crypto market.

1.10 ICO:
Initial Coin Offering (ICO) is just like IPO (Initial Public Offering) where companies
offer their shares to general public to raise the funds, same way cryptocurrencies
which are new in market traded through the ICOs and transactions happen either in
exchange of regulatory currency or other cryptocurrencies. The ICOs have seen
upsurge in recent time.

1.11 How are new Bitcoins created?

In order for the Bitcoin system to work, people can make their computer process
transactions for everybody. The computers are made to work out incredibly difficult
sums. Occasionally they are rewarded with a Bitcoin for the owner to keep. People set
up powerful computers just to try and get Bitcoins. This is called mining.
But the sums are becoming more and more difficult to stop too many Bitcoins being
generated. If you started mining now it could be years before you got a single Bitcoin.
You could end up spending more money on electricity for your computer than the
Bitcoin would be worth.

1.12 Why are Bitcoins valuable?

There are lots of things other than money which we consider valuable like gold and
diamonds. The Aztecs
used cocoa beans as money. Bitcoins are valuable because people are willing to
exchange them for real
goods and services, and even cash.

1.13 Why do people want Bitcoins?

Some people like the fact that Bitcoin is not controlled by the government or banks.
People can also spend
their Bitcoins fairly anonymously. Although all transactions are recorded,
nobody would know which
'account number' was yours unless you told them.

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1.14 Is it secure?
Every transaction is recorded publicly so it's very difficult to copy Bitcoins, make fake
ones or spend ones
you don't own. It is possible to lose your Bitcoin wallet or delete your Bitcoins and
lose them forever. There
have also been thefts from websites that let you store your Bitcoins remotely. The
value of Bitcoins has gone
up and down over the years since it was created in 2009 and some people don't think
it's safe to turn your 'real' money into Bitcoins.

1.15 Cybercrime:
Last but not the least, the growth of the cryptocurrency market is need to the degree
to which it can assure all the investors that theircon money will be safe. This seems
to be traditional investing logic, but with the innovative nature of cryptocurrencies,
investors are particularly cautious about the safety of their invested capital. Despite
the security facilitated by blockchain technology, the crypto world is still entirely
digital and therefore vulnerable to cyber-attacks. This has ve years with
hundredsalready occurred multiple times over the past of millions of dollars being
stolen by hackers all across globe.

1.16 Tax Regime:

In Union Budget 2022, the finance Minister announced the cryptocurrency tax in
India at flat rate of 30 percent on any income from the transfer of Virtual Digital
Assets (V D A). Additionally, another section 194S dedicated to the treatment of Tax
Deducted at source (T D S) in the event of a transfer of a V D A was also announced.

The Indian Government initial response to cryptocurrencies was to ban all digital
assets transactions in the country. However due to the tremendous popularity an huge
trading volumes on crypto exchanges, resulting in cryptocurrencies laws, which cleary
states the tax implications on digital asset management.

What is TDS?

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Strengths:
Bitcoin has strength by design to make it a viable currency that has elevated it in
status over the years, more notably the fixed limit of bitcoin that will exist. Bitcoin
will be mined with diminishing returns every four years until the maximum number of
bitcoins are reached: a total of 21 million (King, 2013). This aspect of Bitcoin is
important for its value. Due to the limited amount of bitcoins, it will never
become inflated from an overabundance of bitcoins. Also, bitcoin and other
cryptocurrencies are generally regarded as being protected from inflation originating
from national government changes or restrictions (Magro, 2016). This creates a “safe
haven” for investors to put their wealth into, as it generally does not lose value
based on inflation. Bitcoin is
quickly showing its strength as a refuge against inflating national currencies.
However, as is the case with most commodities, the price can fluctuate wildly based
on many other external factors. The combination of demand for a safe haven option
and its price volatility helped Bitcoin to become the best performing currency of 2015
using the US Dollar Index. This means that Bitcoin was the highest valued currency in
the entire world at the end of last year. This is no small feat in a global economy with
powerhouses like China and the United States running the landscape.

Weakness:
Cryptocurrencies‟ ability to be traded like a commodity can also be a weakness.
Commodity based markets show
a huge fluctuation in value from various events in the marketplace. This value
fluctuation ultimately limits investor trust in the commodities. An unforeseen event
could cause an investor to lose huge portions of money, decreasing investor trust.
Also, determinates of bitcoin price have not truly been meted out, which creates an
uncertain trading environment. Commodities are also prone to being traded by
investors with a “buy low, sell
high” mentality, which has overreaching effects to those who are using bitcoin
for currency and create value
fluctuations. Price volatility generates risk, which discourages both merchants and
consumers from holding cryptocurrency for any significant length of time (PwC,
2015). Too much risk in lowers consumer trust, which
limits validation of legitimacy. Bitcoin‟s price is also at risk from being in a shallow
market, even though it has
the highest capacity of all cryptocurrencies.

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Opportunities:
Businesses are beginning to see the value in using cryptocurrencies for international
transactions, especially when transactions need to occur quickly in response to an
emergency. Cryptocurrencies are solely positioned to solve this problem thanks to
the speed and ease of transaction in the peer-to-peer system. Money can be
wired internationally, but typically arriving days after being sent and not for the
full amount (Team, 2016). The transaction can be hit with any number of
unexplained fees as it crosses borders, making it difficult to send the correct amount to
another business. A good example of this type of emergency need is an online
company who is suffering from a denial-of-service attack and is looking to get
immediate protection from a network security company (Team, 2016). In this
scenario, speed is of transaction is of the essence, for every minute that the
company‟s website is down, profits are being lost. Cryptocurrency has a major
advantage over traditional
currencies thanks to its agility in making fast peer-to-peer transactions, especially in
international business-to-business scenarios.

Threats:
Bitcoin has quite a few hurdles to clear for user acceptance to become widespread.
The value fluctuations that plague cryptocurrencies puts doubt in users, as well as
investors. Ultimately a limiting factor in cryptocurrency is general acceptance.
[PWC]. Value fluctuations reduce trust that a consumer‟s value would be retained on
a day to day basis, limiting faith in the currencies overall worth. In a survey performed
by PwC, 83% of those surveyed had little to no familiarity of bitcoin (PwC, 2015).
The lack of central ownership of cryptocurrencies means that any attempt to
remediate this marketing problem using advertisements could theoretically help the
investing and theft, generally due to faulty system setups by exchange companies.
These hacks generally make the news, and can easily convince the layman that they
are unsafe locations to put their money. There is also a large gap in laws that cover the
use of cryptocurrency. As long as cryptocurrencies remain in an area not generally
covered by binding. Markets and governments are slow to react to the new technology

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2.Review of Literature

Review of literature :
1. Akshay A., ShivashankaracharY. - “A Study On Security Issues In Investments
And Transactions In Bitcoins And Cryptocurrencies” In this paper, they have
focused on the unique characteristics of Bitcoin as a Cryptocurrency and the
major security issues related with the transaction and investment of Bitcoins.
The security of the Bitcoins is the major area of research. As its origin is
mainly technology based but it is still vulnerable during transaction process.
The security issue is not related only to the mining and transaction of Bitcoins
but its online storage also poses major security threat. This paper also pointed

13
 out the other risks associated with Bitcoins like no regulation regarding its
transaction in India. Therefore, no considerations regarding any kind of
grievances related to the Bitcoins. Other issues are like less awareness among
people about bitcoins, volatility, transactions of Bitcoins by illicit users as it is
part of decentralised system, no central regulation etc.

2. Christian Catalini, MITExpert- “Blockchain, Explained” In this Blog (MIT

Digital), the author has explained in detail about the Blockchain Technology
and its origin linked with the origin of cryptocurrency. He has emphasized that
blockchain technology has provided the basic inherent values to
Cryptocurrency like low cost of cation and networking, privacy and security
etc. He has alsoveri explained how this blockchain technology will disrupt
other sectors like Banking, Finance, Money Transfer, Money Payments,
Identity & cial Intelligence etc. He hasPrivacy, Internet of Things, Robotics,
Arti predicted that the blockchain technology will be booming all over the
globe in coming decade.

3. Shailak Jani- “The Growth of Cryptocurrency In India: Its Challenges &

Potential Impacts on Legislation” In this Research Paper the author has tried to
explain how technology has led to the origin of Cryptocurrency and its growth
trend in global market as well as its business in Indian market. The paper also
envisages that how 21 countries of the world have reacted towards
cryptocurrency i.e. whether Friendly or Neutral or Hostile stance towards it.

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3.Research &
Methodology

15
1. Research:
 Definition - Research is the systematic process of collecting and logically
analyzing data for some purpose.
 Motive - The motive of this research is to find awareness on crypto currency
of People

2. Research Design :

Objectives of Research

 To determine whether people will choose cryptocurrency or not.

 To know the future of crypto currency in India.

3. Research Problem

In Kharghar City the people are not confident about investing in cryptocurrency.

4. Scope of Research :
a) Area's cover :

Some sectors of Kharghar City

b) Sources of Data:

Primary Data: Questionnaire, Survey Method

Secondary Data: Website, Journals, Articles

c) Tools and techniques of the analysis:

Pie Diagram, Tables, Charts.

d) Sampling procedures:

60 Respondents

e) Period of Research:

30 days

f) Limitation:

Limited only for the Kharghar city

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4.Data analysis &
Interpretation

17
Data Analysis and Interpretation:
1. Age

Sr.No. Responses No. Of respondents Percentage (%)

1 18 – 30 37 61.7
2 31 – 45 23 38.3
3 Total 60 100
Among all the respondents 37 are aged between 18 to 30 years and 23 are aged between 31 to
45 years.

2. Gender

Sr. No Responses No. Of respondents Percentage (%)

1 Male 48 80
2 Female 12 20
3 Others 0 0
4 Total 60 100
Out of total respondents 80% are males and 20% are females.

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 3. Occupation

Sr.no Responses No. Of respondents Percentage (%)

1 Student 24 40
2 Service 15 25
3 Business 15 25
4 Housewife 6 10
5 Total 60 100
Among all respondents 24 are students, 15 are both from services and business and 6
are housewives.

4. Monthly Income

Sr. no Responses No. of respondents Percentage (%)

1 0 – 24,999 33 55
2 25,000 – 49,999 11 18.3
3 50,000 – 99,999 10 16.7
4 1,00,000 & above 6 10
5 Total 60 100
Out of all respondents 33 persons earn below Rs. 25,000, 11 person earn between 25,000 to
50,000, 10 persons earn between 50,000 to 1,00,000 and 6 persons earns above 1,00,000.

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 5.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 49 81.7
2 No 11 18.3
3 Total 60 100

Interpretation:

The above table and pie diagram shows the data of how many respondents are aware about
crypto currency, from the above data it can be observed that 81.7% of total respondents are
already aware about crypto currency and 18.3% of respondents are not aware about crypto
currency.

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 6.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 42 70
2 No 18 30
3 Total 60 100

Interpretation:

The above Pie diagram and table shows that how many respondents want to more about
digital currency. From this we can see that 70% of the total respondents want to learn about
crypto, where as 30% of them are not interested in digital currency

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 7.

Sr. No Responses No. of respondents Percentage (%)

1 Good investment 26 43.3
2 Risky investment 25 41.7
3 Don’t know 9 15
4 Total 60 100

Interpretation:

From the above Table and Pie chart, it can be observed that 43% respondents feels that crypto is
good investment, 41% respondents feels that it is risky investment and 15% don’t know about it.

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 8.

Sr. No Responses No. of respondents Percentage (%)

1 Long term 39 65
2 Short term 21 35
3 Total 60 100
Interpretation:

The above Pie diagram and table shows that 65% thinks crypto is profitable for long
term and 35% thinks about short term.

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 9.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 25 41.7
2 No 35 58.3
3 Total 60 100

Interpretation:

The above Pie diagram and table shows the data about how many respondents are ready to
invest in crypto, out of which 58.3% of respondents are not in the favour of investing and
41.7% of respondents are looking forward to invest.

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 10.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 38 63.3
2 No 22 36.7
3 Total 60 100

Interpretation:

The above Pie diagram and table shows the data of whether crypto currencies can be
controlled by one person or nation. Out of which 63% thinks that it can be controlled and
37% of respondents thinks that crypto currency is a total decentralised product.

25
 11.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 54 90
2 No 6 10
3 Total 60 100

Interpretation:

The above Pie diagram and table shows the data whether crypto should be regulated in India.
90% of respondents thinks that it should be regulated and 10% of respondents thinks that it
should not be regulated in India.

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 12.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 55 91.7
2 No 5 8.3
3 Total 60 100

Interpretation:

The above Pie diagram and table shows that 91.7% of the total respondents thinks that
crypto can help to boost Indian economy and 8.3% of respondents thinks that it is not
good for the economy.

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 13.

Sr. No Responses No. of respondents Percentage (%)

1 Investment Asset 56 93.3
2 Payment system 4 6.7
3 Total 60 100

Interpretation:

The above Pie diagram and table shows that how crypto should be used, out of which 94%
will use as investment option and 4% wants that it should be used as payment system.

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 14.

Sr. No Responses No. of respondents Percentage (%)

1 Yes 27 45
2 No 33 55
3 Total 60 100

Interpretation:

The above Pie diagram and table shows that crypto can change banking system, out of which
45% feels that crypto can change banking system and 55% thinks that banks will not change.

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5. Conclusion:

30
Conclusion:
From the above findings, it can be concluded that people in general are aware of the
Cryptocurrency and they would like to see it as part of their investment portfolio as it
provides good return. But they are not willing to invest in Cryptocurrency due to lack of
regulation from Government and regulatory authorities. If Government of India and its
regulatory authorities will come forward to regulate its use and transaction in financial
market, it can play a major role in entire Country.

As it is well known that Cryptocurrency is the product of all new age innovative
technologies, and many countries of the world have already regulated its use in day to day
business and many countries are coming forward to regulate its transaction in financial
market. So, Indian is also coming up with a regulatory bill its transaction in Government and
its regulatory authority should come forward and take steps to regulate the transactions of
Cryptocurrency as investment option.

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6. Findings and
Suggestions:

32
6.1 Findings:
From the Data Analysis and Data Interpretation, following findings have emerged
1. Majority of the respondents are Male
2. Most of the respondents fall in the age category of 18 - 30 years
3. Around 82% of the respondents are aware about the Cryptocurrency.
4. Almost 70% of the respondents are interested to know more about have
Cryptocurrency.
5. Majority of the respondents feel that Cryptocurrency should be regularised as
Investment tool.
6. Almost 90% of them feel that crypto can help to boost Indian economy and
accept it as a Investment option rather than payment option.

6.2 Suggestions:
As cryptocurrency is a part of decentralized system and it is available across the
globe, so it is aptly required to regulate its use to stabilise its demand, as it is very
volatile in nature. Its regulation is also important to mitigate its use by illicit users.
2. As Cryptocurrency inherently imbibe the most innovative technologies of the
world currently, so imposing complete ban on it, will be a loss to the millennial
generation to learn and experience such innovative product.
3. As this study was conducted on a very small scale, so the data ndings might be
differed from actualcollected and their perception of people. Therefore, it is
advisable and recommendable to conduct a study on large scale to have extensive
idea about people's perception. So that it can provide a base for the Government and
its regulatory agencies to make their decisions properly.
4. The Sampling Units chosen were mainly Convenience sampling units which
formed the basis of this research study but those ll thesampling units were not
guided properly, how to questionnaire and how to respond each question for their
proper response. So there have been some degree of sampling errors which can be
observed during Data Analysis.

6.3 Reference:
1. www.researchgate.net
2. www.worldwidejournals.com
3. www.rbi.org.in
4. www.livemint.com
5. www.ivestopedia.com
6. www.coinmarketcap.com
7. www.wazirx.com
8. www.cnbc.com
9. www.ndtv.com
10. www.time.com/nextadvisor
11. www.timesofindia.indiatimes.com
12. www.coindcx.com
13. www.coinswitchkuber.com
33
14. www.theverge.com
15. www.sectigostore.com
16. www.academia.edu
17. www.thehindu.com
18. www.journals.researchparks.org
19. www.neliti.com

34
7.Appendix:

35
1. Name:

2. Age:
o 18- 30
o 31- 45
o Others

3. Gender:
o Male
o Female
o Others

4. Occupation:
o Student
o Service
o Business
o Housewife

5. Income:
o 0 - 24,999
o 25000 – 49,999
o 50000 – 99,999
o 1,00,000 and above

6. Are you aware about Crypto currency?

o Yes
o No

7. Are you interested to know more about digital currency?

o Yes
o No

8. What do you think crypto is?

o Good Investment
o Risky Investment
o Don’t know

9. Is crypto profitable for?

o Long term
o Short term

10. Are you looking forward to invest in crypto?

o Yes
o No

36
11. Do you think crypto currencies can be controlled by one person or nation?
o Yes
o No

12. Should crypto be regulated in India?

o Yes
o No

13. Will it helps to boost Indian economy?

o Yes
o No

14. For what purpose crypto currencies should be used?

o Investment asset
o Payment system

15. Do you think crypto can change traditional banking system?

o Yes
o No

37