Indian crypto investors were concerned when the government imposed a 30% tax on cryptocurrency transfers, at a time when most of them had seen their portfolios go into the red owing to the recent crypto crash.

"A lot of small investors are now wondering, 'Is it worth investing in crypto?'" said Vishal Gupta, a crypto pundit based in Noida. "Their holdings are already down as a result of the crypto market's decline over the previous two months."