India’s cryptocurrency market is experiencing rapid growth, with trading volumes nearly doubling in Q4 2024 to reach $1.9 billion. Despite strict taxation policies and regulatory uncertainty, the sector continues to thrive, particularly in smaller cities where people are turning to crypto as an alternative income source.
A recent Reuters report highlights how job stagnation has driven an increasing number of individuals towards digital assets. Jaipur and Pune have emerged as crypto trading hotspots, thanks to a surge in retail investment and educational awareness around blockchain technology.
Global Factors Driving India’s Crypto Boom
Beyond domestic factors, global trends have also played a role in India’s crypto surge. The election of pro-crypto U.S. President Donald Trump has sparked renewed global enthusiasm for digital assets.
Edul Patel, co-founder of Mudrex, observed:
“There is a lot of curiosity at the ground level… especially with Trump becoming U.S. president and the entire flavor of crypto changing worldwide.”
This renewed interest has even led to U.S.-based crypto exchanges looking to re-enter the Indian market. Kraken, which was previously banned in 2024, is reportedly planning a comeback, while Coinbase is also considering a return after exiting the country in 2023.
Crypto’s Growth in India Despite High Taxes and Unclear Regulations
India’s crypto market is projected to surpass $15 billion by 2035, despite major challenges:
✔ 30% tax on crypto gains – One of the highest in the world, discouraging some investors.
✔ Lack of a clear regulatory framework – No new laws have been introduced, and crypto is not classified under existing securities rules.
✔ Regulatory ambiguity – It remains unclear which government body has oversight over digital assets.
Kush Wadhwa, a partner at Grant Thornton Bharat, believes that India’s young, tech-savvy population will continue driving adoption, making the country one of the biggest crypto markets in the world.
Rising Crypto Scams Pose Security Challenges
While India’s crypto adoption is on the rise, fraudulent activities are also increasing, raising concerns over investor safety.
The Enforcement Directorate (ED) recently busted a ₹600-crore crypto scam.
Indian national Chirag Tomar was indicted in the U.S. for defrauding victims of $20 million through fake exchanges.
Investigators found that ₹15 crore (~$1.7 million) was funneled to Tomar and his family.
As scams rise, regulators face a delicate balancing act—promoting innovation while ensuring investor protection.
What’s Next for India’s Crypto Market?
With retail investment surging, U.S. exchanges returning, and government policies still unclear, India’s crypto market is at a crossroads. The country has the potential to become a global crypto leader, but much depends on how regulations evolve.
