India’s crypto trading volumes have surged to nearly $2 billion, fueled by increasing participation from smaller cities as young investors seek financial stability amid sluggish job and wage growth.
According to Reuters, crypto trading in India reached $1.9 billion in Q4 2024, more than doubling from the previous quarter as retail traders shifted toward digital assets. The trend highlights a growing demand for alternative income sources, especially as traditional job markets remain weak.
Why Indian Traders Are Moving Toward Crypto
Several key factors have contributed to this surge in crypto activity:
- Tighter stock market regulations have led some investors to explore cryptocurrencies.
- Crypto’s global resurgence, especially with Donald Trump’s return to the U.S. presidency, has shifted sentiment in favor of digital assets.
- Retail investors in smaller cities—such as Jaipur, Lucknow, and Pune—are increasingly turning to crypto for additional income.
“Many young Indians, previously trading stocks and derivatives, now see digital assets as an alternative—especially with Trump becoming the U.S. president and the entire flavor of crypto changing worldwide,” said Edul Patel, co-founder of Indian crypto exchange Mudrex.
Despite High Taxes, India’s Crypto Market Poised for Growth
While regulatory uncertainty and high taxation remain obstacles, industry experts remain optimistic about the long-term growth of India’s crypto sector.
According to Kush Wadhwa, partner at Grant Thornton Bharat, India’s crypto market is projected to surpass $15 billion by 2035, underscoring the rapid adoption and investor interest in digital assets.
Global Crypto Exchanges Eye a Comeback in India
With the Indian crypto market booming, several global exchanges are preparing to re-enter the space:
- Kraken is making plans to return after being banned in 2024 for anti-money laundering violations.
- Coinbase is reconsidering its India expansion after previously facing regulatory resistance from the National Payments Corporation of India (NPCI) and reported “informal pressure” from the Reserve Bank of India (RBI).
What’s Next for India’s Crypto Market?
Despite challenges, crypto adoption continues to accelerate in India, driven by retail traders in smaller cities and a growing acceptance of digital assets as an investment tool.
With trading volumes soaring and global exchanges seeking entry, the next few years could be pivotal for India’s position in the global crypto ecosystem.
