Crypto analysts believe that India’s surging digital asset adoption could force a shift in government policy. Estimates show over 107 million crypto users in India, representing up to 7 percent of the population, with an expected market size of $6.4 billion in 2025.
At a recent crypto education event in Bhutan, influencer Sujal Jethwani stated that Indian regulators will find it increasingly difficult to suppress digital assets given such strong grassroots demand. He argued that shifting policy is inevitable as crypto becomes mainstream among retail users.
Authorities are responding: India is reportedly preparing a discussion paper that outlines strategic options for dealing with crypto, in alignment with global standards like the Crypto Asset Reporting Framework. This signals movement from abstention toward structured regulation. Despite restrictive tax policies, including a 30 percent capital gains tax and 1 percent transaction levy, crypto trading volume continues to surge particularly in smaller cities driven by middle income groups seeking alternative investments.
India’s Supreme Court has urged regulators to speed up policy clarity. Meanwhile, top crypto exchanges are seeing renewed interest ahead of clearer guidance. Analysts view these developments as a turning point: policy must adapt to reality or risk losing out to unregulated onshore or offshore platforms. If India moves toward comprehensive regulation, it could provide legitimacy and stimulate institutional participation, turning its huge retail market into a vital global crypto sector.
