Crypto trading in India is booming, particularly in smaller cities, as investors look for new opportunities amid slow job growth and tightening financial regulations, Reuters reported on Feb. 25, citing local industry participants.
Trading volumes on the country’s top four exchanges more than doubled last quarter, reaching $1.9 billion, according to data from CoinGecko.
The shift comes as regulatory restrictions on stock options trading push retail investors toward digital assets. With nearly two-thirds of India’s 1.4 billion population under 35, a growing number of young traders are seeking financial independence through crypto markets.
Retail momentum
Once dominated by major financial centers, India’s crypto market is now being fueled by traders from smaller cities.
Data from CoinSwitch, one of India’s largest crypto platforms, shows that seven of the top ten cities driving crypto adoption in 2024 were non-metro locations such as Jaipur, Lucknow, and Pune.
Balaji Srihari, vice president at CoinSwitch, which has a user base of 20 million, told the news outlet:
“Retail trading is expanding beyond the big cities. The same trend that reshaped equity markets is now playing out in crypto.”
Exchanges and trading academies are capitalizing on this demand by offering educational programs tailored to new investors. Platforms such as Thoughts Magic Trading Academy in Nagpur have seen an influx of students looking to transition from stock options to crypto trading.
According to consulting firm Grant Thornton Bharat, India’s crypto sector is expected to grow from $2.5 billion in 2024 to over $15 billion by 2035, with an estimated annual growth rate of 18.5%.
Regulatory uncertainty
Despite the surge in interest, India’s regulatory stance on cryptocurrencies remains undefined, with regulators taking a decidedly cautious approach toward the sector.
The government has yet to introduce a comprehensive framework, and oversight responsibilities remain unclear. While India has imposed a steep 30% tax on crypto trading gains, it has not yet implemented securities laws specific to digital assets.
The Reserve Bank of India has maintained a cautious approach, warning of potential financial stability risks associated with widespread crypto adoption. In its December 2024 Financial Stability Report, the central bank highlighted concerns over volatility and macroeconomic impacts.
However, these warnings have done little to slow retail participation. With job growth lagging behind economic expansion, many investors — especially in smaller cities — view crypto trading as a means to supplement their income and secure financial independence.
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