After taking a significant financial hit in 2022, the cryptocurrency industry is expecting a strong rebound this year as new regulations come into effect, which will make the cryptocurrency space more secure. Additionally, India, which has assumed the G20 presidency, has announced collaborations and synergies between nations to develop international cryptographic laws and frameworks.
Expected trends of the crypto market in 2023
The use of central bank digital currency (CBDC) globally will usher in a new era of trade deals, economic value creation, hardware manufacturing deals, and bilateral relationships. โIt is also teaching investors to be patient with their investments. By the end of 2023, we expect a rise in the market as new regulations arrive to make cryptocurrencies a safer space. However, the increase in interest rates and the easing of monetary stimulus will likely produce a tougher financing environment that will narrow the field of potential investors who can win high prices," says Kumar Gaurav, founder and CEO of Cashaa.
Increased adoption: As more people become aware of cryptocurrencies and the technology that underpins them, the number of people using these assets will likely continue to grow. It could lead to increased adoption by businesses and individuals, which could boost demand for cryptocurrencies.
Greater Regulatory Clarity: As the cryptocurrency sector continues to grow and mature, it is likely that regulatory bodies around the world will provide more clarity and guidance on how these assets should be treated. This could help build trust in the market and encourage further adoption.
Improved infrastructure: The infrastructure surrounding cryptocurrencies, such as exchanges, wallets, and payment processors, is likely to improve and become more user-friendly. This could make it easier for people to buy, sell, and use cryptocurrency in their daily lives.
Be careful with taxes: In the 2022 budget, the government imposed a 30 percent tax on virtual digital assets (VDAs). "The ecosystem advocates for lower tax rates: 0.01 percent TDS on sales transactions instead of the existing 1 percent, parity with short-term and long-term stock market gains instead of a 30 percent tax." percent on profits," says Rajagopal Menon. , Vice President, WazirX, a crypto exchange.
โThis advocacy is to promote local crypto projects and drive adoption to create a self-sustaining crypto industry in the country,โ he added.
Institutional Crypto Investment: The momentum of institutional investment in crypto assets is expected to continue for a while. The market has likely increased the liquidity and popularity of crypto assets as a store of value. "However, the average financing value is expected to follow a similar trend to 2022, with only the most promising projects with market viability backed by investors after careful consideration," Menon says.
Web3 progress in 2023: Leon Foong, head of APAC, Binance, a global cryptocurrency exchange, said that the Web3 infrastructure will continue to grow and attract investor attention. "To build a robust Web3 infrastructure, security is important and Binance plans to continue initiatives such as the Global Law Enforcement Training Program, disclosing Binance hot and cold wallet addresses through Proof of Reserves and establishing the Industry Recovery Initiative (IRI) to protect consumers and rebuild the industry," he said.
