Despite India’s controversial crypto policy and lack of clarity in several aspects, the country emerges as the top market.
According to a new report by crypto exchange CoinDCX, 28 Indian entities became ‘FIU-Registered Reporting Entity.’ India emerged as a global crypto adoption leader, reflecting sustained interest and robust demand for digital assets.
CoinDCX’s year-end report for 2023 shared with CryptoPotato revealed that 60% of the user base is concentrated in just 10 cities.
Contrary to expectations, Tier-2 cities like Lucknow and Patna emerged as surprising leaders in crypto adoption. Jaipur, Indore, Bhubaneswar, and Ludhiana, breaking into the top 15, challenged the notion of major urban centers monopolizing the financial investment space.
One of the most striking trends is the maturation of Indian crypto investors. The average age rose from 25 in 2022 to 30 in 2023, attracting seasoned investors beyond the traditionally young demographic. According to the exchange, this shift indicates a growing understanding and acceptance of cryptocurrencies as legitimate investments.
Notably, Tier-2 and Tier-3 cities are driving female participation, with 65% of women crypto users hailing from these areas. While male investors still outnumber females 7:1, the increasing involvement of women from smaller towns showcases a broader acceptance and adoption of cryptocurrencies.
Delhi and Lucknow emerged as leaders in fostering female crypto investors, emphasizing regional variations in gender participation. These findings challenge stereotypes and highlight the diverse landscape of cryptocurrency adoption across India.
Moreover, November 2023 marked a historic moment, witnessing India’s highest crypto trading volume. Bitcoin’s surge to $36,000, coupled with the potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission, fueled this remarkable uptick.
A specific highlight was November 9th, which was recognized as the record day for crypto trading volume in 2023. The significance of this day further solidifies November’s dominance in the Indian crypto landscape, reflecting the dynamic nature of cryptocurrency markets and the evolving trends among investors.
“In 2023, the industry demonstrated remarkable resilience, providing us with more reasons for optimism than ever before. Despite challenges such as the 1% TDS and high taxation, the industry stood for transparency, with 28 entities in India becoming ‘FIU-Registered Reporting Entity.’ The year saw India emerge as a global leader in crypto adoption, showcasing strong demand and enduring interest in digital assets.”
In what was seen as a crucial uplift for the Indian crypto ecosystem, Finance Minister Nirmala Sitharaman confirmed ongoing discussions within the G20 member nations to formulate an extensive global framework for cryptocurrencies during India’s presidency at the G20 Summit this year.
Chainalysis’ 2023 Global Crypto Adoption Index, unveiled in September, highlights India’s leading position in grassroots crypto adoption, positioning the country at the forefront of global trends in the crypto space.