Key Takeaways
- Crypto adoption surges in India’s smaller cities as job opportunities remain scarce.
- Trading volume on top exchanges has doubled quarter over quarter, reaching $1.9 billion.
- India’s crypto market is projected to grow by $15 billion over the next decade.
As job opportunities dry up and traditional income sources slow down, a new trend is emerging in India’s smaller cities—crypto trading.
Once dominated by metro hubs like Mumbai and Delhi, India’s crypto boom is now being fueled by towns such as Jaipur, Lucknow, and Pune.
Despite regulatory uncertainty and high taxation, India continues to lead in global crypto adoption.
This trend has been particularly evident in past bull markets, and 2024 is proving no different. The key difference this time is that smaller cities are driving the surge.
Regulatory Crackdown on Derivatives Fuels Crypto Surge
A recent Reuters report highlights that many traders have turned to crypto after tighter restrictions on derivatives trading, including higher taxes and compliance requirements. As a result, trading volumes on India’s four largest crypto exchanges have doubled quarter over quarter.
According to CoinSwitch , seven of the ten cities with the highest crypto activity in 2024 are non-metro areas. Meanwhile, CoinGecko data shows that trading volume for Bitcoin (BTC) and Ethereum (ETH) soared to $1.9 billion between October and December.
The surge comes as crypto gains greater mainstream recognition, particularly following the U.S. presidential election. Many analysts believe that the election of a pro-crypto leader has contributed to renewed global confidence in digital assets.
Edul Patel, co-founder of the Indian crypto exchange Mudrex, noted growing curiosity at the ground level, saying, “especially with Trump becoming the U.S. president and the entire flavor of crypto changing the world over.”
India’s Crypto Market Poised for $15 Billion Growth
Despite an uncertain regulatory framework, widespread scams, and a 30% tax on crypto profits, according to Chainalysis , India’s crypto market is projected to expand from $2.5 billion to $15 billion by 2035.
The report also underscores a deepening economic issue—rising unemployment . With joblessness at multi-year highs, many Indians are turning to alternative income sources, including crypto trading.
“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 serves nearly 20 million users.
Regulatory Uncertainty Poses Risks
While India’s crypto adoption rate is surging, the lack of clear regulations could put investors at risk.
The WazirX hack serves as a stark reminder of these vulnerabilities. In 2024, the exchange suffered a $235 million hack, after which it froze withdrawals and even blocked INR deposits. Nearly nine months later, affected users remain entangled in legal battles.
Without regulatory safeguards, India’s growing crypto market faces potential setbacks. Still, with rising adoption in smaller cities and increasing global momentum, the country’s crypto landscape is set for significant expansion in the years ahead.
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