As job growth stagnates, Indians are turning to crypto trading, doubling exchange volumes despite regulatory uncertainty.
Crypto Trading Booms in India’s Smaller Cities
India’s crypto market is witnessing a major shift as traders from smaller cities drive a surge in trading volumes. Amid limited job opportunities and stagnant wage growth, many young Indians are looking at Bitcoin, Ethereum, and Dogecoin as alternative income sources.
Trading Volumes Double
According to CoinGecko, cumulative trading volumes on India’s top four crypto exchanges more than doubled quarter-over-quarter, reaching $1.9 billion in Q4 2024. The surge is largely driven by traders from non-metro cities such as Jaipur, Lucknow, and Pune.
Regulatory Uncertainty Remains
Despite the market’s rapid expansion, India’s government has yet to establish a clear regulatory framework for crypto trading. While the country imposes a 30% tax on crypto gains, authorities have not formally integrated digital assets into existing financial laws. The Reserve Bank of India continues to warn about potential financial stability risks.
Retail Investors Drive Growth
Retail traders are leading the adoption of cryptocurrencies, moving away from stock and options trading due to stricter regulatory measures. Many are drawn by the high volatility and profit potential of digital assets, despite the risks involved.
Education Fuels Interest
Crypto trading academies are emerging across smaller cities, teaching newcomers how to navigate the market. In Nagpur, a flower-shop owner and a transport office worker are among many who spend their evenings learning about crypto to supplement their income.
Future of Crypto in India
India’s crypto market is projected to grow from $2.5 billion in 2024 to over $15 billion by 2035, according to Grant Thornton Bharat. However, without clear regulations, traders remain in a grey area, balancing high returns against regulatory risks.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
