India’s Crypto Boom: Trading Gains Popularity Despite Regulatory Uncertainty
In India’s smaller cities, a new wave of traders is emerging, driven by curiosity and the promise of financial independence. Among them is 28-year-old flower-shop owner Ashish Nagose, who has been attending cryptocurrency trading classes in Nagpur for two months. Like many young Indians, he sees India’s crypto boom as a way to supplement his income, especially during slow business periods.
Young Indians Turn to Crypto Amid Economic Shifts
Nagose, who previously traded stock options, turned to cryptocurrency after regulators tightened rules on equity derivatives. “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, surrounded by flowers at his storefront.
His enthusiasm reflects a broader trend. Data from CoinGecko shows that trading volumes for major cryptocurrencies, including Bitcoin and Ethereum, more than doubled in India’s four largest exchanges, reaching $1.9 billion in the October-December quarter.
India, the world’s most populous country, has a young demographic, with nearly two-thirds of its 1.4 billion people below 35. Despite rapid economic growth, job opportunities and salary increases have not kept pace, prompting many to explore crypto trading as an additional income source.
India’s Crypto Boom: Smaller Indian Cities
From stocks and derivatives, retail traders are now shifting to digital assets, especially as global crypto prices surged after U.S. President Donald Trump’s election victory in November, which signaled a more relaxed regulatory stance on crypto in the U.S.
“There is a lot of curiosity at the ground level, especially with Trump becoming the U.S. president and the entire flavour of crypto changing worldwide,” said Edul Patel, co-founder of Indian crypto exchange Mudrex.
India’s crypto market is projected to grow from $2.5 billion in 2023 to over $15 billion by 2035, at an annual growth rate of 18.5%, according to Grant Thornton Bharat. The growth is now being fueled by non-metro cities, with seven of the top 10 crypto-trading hubs in India coming from cities like Jaipur, Lucknow, and Pune.
“Growth is now being driven by non-metro cities. That’s true for the stock world and it’s true for crypto,” said Balaji Srihari, vice president at CoinSwitch, which has 20 million users.
Regulations and Risks Loom Over Crypto Trading
The rising popularity of crypto trading may challenge Indian authorities, who have taken a cautious stance. The government has imposed a steep 30% tax on crypto gains and warned about its risks and volatility. However, no clear regulatory framework exists.
While India’s market regulator has indicated openness to overseeing crypto, the government has yet to formalize a stance. The Reserve Bank of India (RBI) remains skeptical, cautioning that widespread crypto adoption could threaten financial stability.
“Widespread usage of crypto assets and stablecoins has consequences for macroeconomic and financial stability,” the RBI stated in its December 2024 Financial Stability Report.
Despite the uncertainty, traders like 25-year-old mechanical engineer Sagar Neware remain undeterred. He spends his nights trading crypto, hoping to earn enough to restart his father’s shuttered plastic packaging business.
To sharpen their skills, Neware and about two dozen others attend daily trading classes at Thoughts Magic Trading Academy in Nagpur. Their instructor, Yash Jaiswal, an equity options trader, has trained around 1,500 students in two years. A classroom poster reads: “You’re just one trade away from your dream life.”
For thousands of young Indians, that dream is powered by crypto—despite the looming regulatory risks.
With inputs from Reuters
