- Totality Corp CEO explains why the Indian market is far from NFT mass adoption.
- Cultural differences and strict crypto regulations account for the stigma around NFTs in India.
- Rigid cryptocurrency tax laws will further cause adoption barriers.
The 3D gaming development company, Totality Corp Founder and CEO Anshul Rustaggi explained in an interview why India is holding back from embracing NFTs. While the country ranks very high for cryptocurrency adoption, the Indian market has not expressed the same enthusiasm for NFTs.
According to Rustaggi, one of the biggest contributing factors to India’s hesitation toward NFT adoption is the country’s extremely stringent crypto regulations. Uncertain regulations imposed by the Indian government have made it challenging for crypto investors and traders in India to rely on digital assets as an investment tool for wealth preservation.
In addition, 2022’s crypto tax laws levying a 30% tax on all crypto asset transfers, have further forced many crypto unicorns to leave India and have pushed Indian crypto traders to shift to foreign exchanges, not implementing the tax rules.
While this is a major concern for the future of cryptocurrency in the country, the laws combined with social and cultural barriers have no doubt halted the NFT movement as well, especially in lower-tier cities.
Moreover, Rustaggi states that the Indian population sees NFTs as a speculative investment that is extremely volatile and doesn’t hold the same respect as other investment options in the country.
Rustaggi emphasizes the country’s obsession with social status;
In India, social status matters massively, the largest expense we have in India is marriage. On average, 34% of your life’s expenses are for the marriage of your children. And the thing is that it’s such a social event, you want to showcase your best to the world. So social status is important.
Yet, this has not stimulated any special interest in NFTs in the nation even though some collections are often a sign of wealth and status, owned by various millionaire celebrities.
Despite the low virtual assets enthusiast pool, Totality Corp’s NFT drop, Lakshmi NFT has been a success in the country, generating nearly $561,000.