Crypto Trading Boom in India

Crypto trading in India is experiencing significant growth, with trading volumes hitting nearly $2 billion as investors from smaller cities seek financial stability amidst sluggish job and wage growth.

In Q4 2024, crypto trading volumes in India surged to $1.9 billion, more than doubling from the previous quarter. This increase reflects the efforts of smaller-city investors looking for new income sources due to persistent weak job growth and stagnant wages, according to Reuters.

Tighter regulations in the stock market and growing interest in cryptocurrencies are motivating more traders to make the switch. Many young Indians, who previously focused on stocks and derivatives, are now exploring digital assets as viable alternatives. “Especially with Trump becoming the U.S. president and the entire flavor of crypto changing worldwide,” noted Edul Patel, co-founder of Mudrex, an Indian crypto exchange.

Retail traders are driving the majority of this trend, as exchange executives report that out of the top 10 cities leading in crypto adoption in 2024, seven are smaller cities like Jaipur, Lucknow, and Pune. These locations are witnessing a rise in individuals turning to cryptocurrency in search of extra income.

Despite facing high taxes and regulatory uncertainty, India’s crypto market is projected to surpass $15 billion by 2035, according to Kush Wadhwa, partner at Grant Thornton Bharat.

With the retail investor segment booming, U.S.-based exchanges are eager to capitalize on this trend. Notably, Kraken is preparing to re-enter the Indian market after facing a ban in 2024 due to anti-money laundering violations. Meanwhile, Coinbase is also contemplating a return after its challenges with the National Payments Corporation of India and reported informal pressure from the Reserve Bank of India.

Read more: India’s law enforcement confiscates $190m in crypto from BitConnect.