India's crypto market is experiencing unprecedented growth. Thousands of people, particularly young professionals, are turning to Bitcoin, Ethereum, and Dogecoin to improve their economic situation amid stagnant wages and a tough job market.
Crypto in Small Indian Cities
This trend is not only seen in major metros like Mumbai and Delhi but also in smaller cities, where interest in cryptocurrencies is growing. Residents of Jaipur, Lucknow, and Pune are increasingly turning to crypto to supplement their income in the face of slow economic mobility.
Ashish Nagose, a 28-year-old flower shop owner in Nagpur, started trading crypto two months ago after attending a local trading school. "I want to run my family shop and hope that trading can provide a steady income when business slows down, like in the month after Diwali," he said.
Institutional Interest in Crypto
The enthusiasm for crypto isn't limited to retail traders. Institutional interest is rising, and India's crypto market is projected to reach $15 billion by 2035, up from $2.5 billion in 2024. According to Grant Thornton Bharat, the estimated compound annual growth rate is 18.5%.
Data from CoinSwitch indicates that growth is being driven by lower-tier cities, which also applies to the stock world and crypto. Sagar Neware, a 25-year-old mechanical engineer in Nagpur, earns 25,000 rupees ($288) a month by day, working at a local transport office, and trades crypto by night, hoping to restart his father's business.
Uncertainty in Crypto Regulation
Despite the explosive growth in trading, India's crypto industry continues to operate in a legal gray area. Unlike most G-20 countries, India has neither introduced new laws governing digital assets nor integrated crypto into existing financial regulations.
The government has imposed a 30% tax on crypto trading gains, one of the strictest tax regimes globally, but hasn't taken any more steps to regulate exchanges or investor protections. Trading volumes on India's four largest crypto exchanges doubled in just three months, hitting $1.9 billion in Q4 2024.
India's crypto market continues to grow at impressive rates, attracting both retail and institutional investors. However, unresolved regulatory issues leave the market in a state of uncertainty, highlighting the need for a clearer legal framework for cryptocurrencies.
