India’s cryptocurrency trading volume reached around $1.9 billion in Q4 2024, showing nearly double growth compared to earlier quarters. This surge can be attributed to strict taxation policies that have pushed many towards cryptocurrency as an alternative income source amid a stagnant job market.
Crypto Market Growth
According to a report from Reuters published on February 25, 2025, interest in cryptocurrencies, especially in smaller towns, has amplified as residents seek ways to supplement their income. Factors such as the election of US President Donald Trump have also sparked global interest in cryptocurrencies, shifting investor attention from traditional financial instruments to digital assets.
“There is a lot of curiosity at the ground level … especially with Trump becoming the US president and the entire flavor of crypto changing worldwide.” – Edul Patel, co-founder of Mudrex
Demographics Favoring Cryptocurrency
Kush Wadhwa from Grant Thornton Bharat estimates that despite hefty taxation, the Indian crypto market could exceed $15 billion by 2035, thanks to a tech-savvy youth demographic showing a strong inclination towards digital currencies. Key cities like Jaipur and Pune are emerging as significant hubs for crypto trading facilitated by educational institutions leading the charge in digital asset education.
There has also been a notable investment influx in cryptocurrencies from US-based exchanges, like Kraken and Coinbase, which are seeking to re-enter the Indian market following prior bans.
Recent Updates: Coinbase is set to re-enter India post its 2022 exit amidst growing interest from investors.
However, as the market expands, the Reserve Bank of India (RBI) and the Indian government remain cautious regarding cryptocurrencies, awaiting robust regulatory frameworks to ensure security and prevent fraudulent activities like the recent Rs 600-crore crypto scam involving Chirag Tomar.
Conclusion
While cryptocurrency trading offers new income potentials, Indian regulators face the complex task of balancing industry growth with investor security measures against rising fraud risks. Overall, the regulatory landscape remains uncertain, with no new laws introduced to govern crypto trading or clarify oversight responsibilities.
