Young investors, access to global markets, and interest in blockchain technology continue to draw Indians to crypto. That demand has persisted despite high taxes and the absence of a full regulatory framework.
Young Investors Drive Crypto Adoption Beyond Major Cities
India ranked first in Chainalysis’s 2025 global crypto adoption index. The OECD also found that India and South Korea received the largest crypto inflows in absolute terms during the 12 months to June 2025. These measures track activity, though neither provides a precise count of Indian investors.
Industry surveys point to a young investor base that extends beyond major cities. WazirX says more than 82% of its users live in non-metro areas. CoinSwitch says nearly three-quarters of the investors in its second-quarter 2026 report were under 35. The figures come from individual platforms, so they do not describe every Indian crypto investor.
Why Investors Continue to Choose Crypto
For some investors, crypto offers another asset to hold alongside conventional investments. Others want access to markets and products built on blockchain technology. CoinSwitch co-founder Ashish Singhal says younger investors are comfortable with digital financial products and interested in the global technology economy.
Interest does not remove the risk of loss. Crypto prices can change sharply, while traders may face security threats or limited liquidity. A decentralised finance investor quoted in the original report cautioned against expecting large returns every day. “It can be a difficult journey,” the investor said.
Taxes and Compliance Shape Trading
India taxes income from transfers of virtual digital assets at 30%, plus applicable surcharge and cess. A 1% tax deduction also applies to covered transfers, while traders cannot offset crypto losses against other income.
WazirX founder Nischal Shetty says the deduction has reduced trading on Indian spot exchanges. However, his estimate of the drop reflects his assessment, not an official market-wide count.
Exchanges must also follow anti-money-laundering requirements. In a recent update, India’s Financial Intelligence Unit issued non-compliance notices to 15 virtual digital asset service providers on September 9. The government said providers serving India must register and meet reporting obligations whether they operate from India or abroad.
A Regulatory Decision Remains Pending
India has tax and anti-money-laundering rules for crypto, but no comprehensive law governing the wider market. The Reserve Bank of India has raised concerns about financial stability and the use of crypto assets for illicit activity. For investors, that leaves questions about consumer protection and what recourse they have when a platform fails.
Meanwhile, the parliamentary finance committee has been examining virtual digital assets and the need for a statutory framework. The government has also added crypto-asset reporting requirements to tax law. These steps increase oversight, but they have yet to settle how India will regulate crypto investment as participation continues.
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Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
