India's crypto market will expand by over $15 billion by 2035

India's trading volume in cryptocurrency was around $1.9 billion in the fourth quarter of 2024. This is nearly double the last quarter. Due to strict taxation, the Indian cryptocurrency market has witnessed growth over the past few years.

A report released by Reuters on February 25, 2025 shows that growth is particularly visible in small towns as the job market is stagnating and individuals are looking for alternative sources of income.

Additionally, the election of US President Donald Trump also generated global interest in crypto assets, spurring the shift from traditional investment vehicles to digital assets.

“There's a lot of curiosity at the ground level, especially when Trump becomes the president of the US, and the whole of the taste that codes change all over the world,” said Edul Patel, co-founder of Mudrex, an Indian crypto exchange. “We'll do that.”

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Demography works in favor of Indian crypto dreams

Kush Wadwa, a partner at consulting firm Grant Thornton Bharatt, estimates that the Indian crypto market will be well above $2035 despite massive taxes. There are many young, digitally literate citizens in this country. Therefore, there is a natural tendency for crypto and other on-chain digital assets.

Jaipur and Pune are one of the cities that have emerged as crypto trading hubs in India, driven by retail investors and educational institutions at the forefront of digital asset recognition and education.

India has a retail investment boom and we have seen US-based exchanges take advantage of the preferred cryptocurrency troops. Kraken, a US-based cryptocurrency exchange, is expected to return to India after it was banned in 2024. Coinbase is also planning to return to India after eviction from the Indian market in 2023.

just: Coinbase will re-enter India after officially withdrawing from the Indian market in 2022. @techcrunch Report pic.twitter.com/wbambqhdeu

– Crypto India (@cryptooindia) February 13, 2025

However, despite growing interest, the RBI and the Indian government have been wary of crypto assets. The market is currently awaiting the development of a robust cryptographic framework based on consultation forms that have not yet been published.

The 30% tax on Indian cryptocurrency profits is a strong hindrance for investors. However, the country has not introduced new laws to regulate cryptography. Additionally, Crypto is not part of existing securities rules.

Currently, it is unknown who has regulatory oversight of domestic cryptocurrency.

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Balance between growth and security

The surge in crypto-related interest in India also comes with a boom in crypto-related fraud. The Enforcement Bureau (ED) recently carried out multiple attacks in various cities in India in connection with the 600 Rs of Cryptocrat.

According to a local news outlet, the investigation into the issue began after the report showed that Indian national Chirag Tomar serves prison sentences in the US. Tomar has been charged with fraudulent victims into a $20 million song through a fake website that mimics a legitimate crypto exchange.

The ED claimed that the scheme poured around 15 crores (approximately $1.7 million) on Tomar and his family.

The rise in crypto fraud and its adoption poses a complicated challenge for Indian regulators. Crypto transactions open up the possibilities of additional revenue streams for many, but ensure that investors' security is of paramount importance to maintaining trust.

A comprehensive regulatory framework must promote innovation and growth while implementing strict measures to prevent fraud.

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The Indian crypto market expanded to grow by 2035, despite the first tax emergence in 99 Bitcoin.

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