The cryptocurrency wave is surging across India’s smaller cities, as more people turn to digital assets as an alternative income source amid rising unemployment and tightening financial regulations. A recent Reuters report highlights that the government’s crackdown on derivatives trading—with higher taxes and stricter compliance—has pushed many traders toward crypto markets.
Crypto Trading Surges in India’s Non-Metro Cities
The trend is most visible outside major metropolitan areas. According to CoinSwitch, seven out of ten cities with the highest crypto activity in 2024 are non-metro regions. This suggests that crypto adoption is no longer limited to major financial hubs like Mumbai, Delhi, or Bangalore.
Data from CoinGecko supports this shift, showing that between October and December, trading volume for Bitcoin (BTC) and Ethereum (ETH) surged to $1.9 billion, reflecting a strong demand for digital assets.
Pro-Crypto Sentiment Boosted by Global Events
One key driver of this trend is the growing global mainstream acceptance of crypto, particularly following the U.S. presidential election. Analysts believe that the election of a pro-crypto leader, Donald Trump, has renewed confidence in digital assets worldwide.
Edul Patel, co-founder of Indian crypto exchange Mudrex, noted:
“Especially with Trump becoming the U.S. president and the entire flavor of crypto changing the world over.”
India’s Crypto Market Could Grow to $15 Billion by 2035
Despite regulatory uncertainty, scams, and India’s 30% tax on crypto profits, the country’s crypto sector is still on track for massive growth. Chainalysis predicts that India’s crypto market will expand from $2.5 billion to $15 billion by 2035.
The shift toward digital assets is also being fueled by economic factors, particularly unemployment, which has reached multi-year highs. With fewer job opportunities, people in smaller cities are looking for alternative ways to earn income, and crypto trading is emerging as a preferred option.
Balaji Srihari, VP at CoinSwitch, noted:
“Growth is now being driven by non-metro cities. That’s true for the stock world, and it’s true for crypto.”
Regulatory Uncertainty Poses Risks
While India’s crypto adoption is growing rapidly, a lack of clear regulations leaves investors vulnerable. The 2024 WazirX hack, where $235 million was stolen, serves as a stark reminder of these risks. Even after nine months, affected users remain entangled in legal battles, with no clear resolution in sight.
Without stronger regulatory safeguards, the future of India’s crypto sector remains uncertain. However, with rising adoption in smaller cities, increasing global momentum, and more traders entering the space, India is set to become a key player in the evolving crypto landscape.
