The crypto-currency market is growing in small Indian cities amid economic challenges
Reuters reported that crypto trading is booming in India, especially in smaller cities. Investors are looking for new opportunities in the face of tighter financial regulations and slowing job growth.
CoinGecko data shows that the volume of trading on the four largest exchanges in China has more than doubled, to $1.9 billion.
As a result, retail investors are now more inclined to invest in digital assets due to regulatory restrictions. Almost two-thirds the 1.4 billion Indians under 35 are now looking for financial freedom through the crypto markets.
Retail momentum
India’s crypto-market, which was once dominated primarily by large financial centers, is now fueled mainly by traders from smaller towns.
CoinSwitch’s data, which is one of India’s largest crypto platforms shows that seven out of the top 10 cities driving crypto adoption by 2024 are non-metropolitan locations like Jaipur and Lucknow.
Balaji Srihari told the news outlet that CoinSwitch has a 20-million user base.
“Retail trading is expanding beyond the big cities. The same trend that reshaped equity markets is now playing out in crypto.”
This demand is being met by trading schools and exchanges offering tailored educational programs for new investors. Students are flocking to platforms such as Thoughts Magic Trading Academy, located in Nagpur. They want to switch from stock options to cryptocurrency trading.
According to Grant Thornton Bharat consulting firm, India’s cryptocurrency sector is expected grow from $2.5 Billion in 2024 to $15 Billion by 2035 with an estimated annual increase of 18.5%.
Uncertainty in the regulatory framework
India’s regulatory approach to cryptocurrencies has not been defined despite the soaring interest. The regulators are cautious and have a reserved attitude towards the sector.
The government still has not introduced a comprehensive regulatory framework, and the oversight responsibilities are not clear. India imposed a 30% tax on gains from crypto trading, but has yet to implement securities laws that are specific to digital assets.
Reserve Bank of India maintained a cautious stance, warning of possible financial stability risks that could be associated with widespread adoption of crypto. The central bank raised concerns about volatility and macroeconomic effects in its December 2024 Financial Stability Report.
These warnings however have had little impact on the retail market. 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.
Postings in: India, Adoption Analysis, Featured Author 
Assad Jafri
AJ has been a journalist for more than a decade, and he’s been a fanatic since the 2011 Arab Spring in Yemen. Specialized in financial reporting, he is now focused on crypto journalism.
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