In Nagpur, India, flower-shop owner Ashish Nagose, like many others across the country, has been attending classes regularly for the past two months to learn about trading cryptocurrencies. Nagose, who previously traded stock options, believes that investing in cryptocurrencies can help protect his family's flower shop during economic downturns.
Expressing his aspirations, Nagose mentioned, "I want to run my family shop and hope that trading can provide a steady income when business slows down, like in the month after Diwali," while surrounded by red roses and orange marigolds in his storefront.
The growing interest in cryptocurrencies among Indians has led to a significant increase in trading volumes on major exchanges. Young Indians are increasingly turning to crypto trading to supplement their incomes, given the country's youthful population, where nearly two-thirds of the 1.4 billion people are under 35.
Many enthusiasts are transitioning from traditional assets like stocks and derivatives to cryptocurrencies, drawn by the prospects of favorable regulations following the election of U.S. President Donald Trump.
The crypto market in India is projected to expand to over $15 billion by 2035, fuelled primarily by retail traders and the increasing interest from smaller cities. Despite regulatory challenges and warnings from authorities, individuals like 25-year-old mechanical engineer Sagar Neware from Nagpur are diving into crypto trading with hopes of reshaping their financial futures.
The regulatory landscape concerning cryptocurrencies in India remains uncertain, with conflicting approaches from different governmental bodies. While taxes on crypto trading gains are high, there is a lack of specific regulations governing the sector. The central bank continues to caution against the widespread use of crypto assets and stablecoins, citing potential risks to macroeconomic stability.
Requests for comments from India's federal finance ministry, the central bank, and the market regulator regarding cryptocurrency oversight went unanswered.