In Wake Of Trump Tariffs, Market Uncertainty, Crypto Surges In India

Crypto investments in India have surged, as traders anticipated a more crypto-friendly regulatory environment not only under the new US administration that has just completed 100 days in office, but also from Indian authorities.

While the global crypto market has experienced regular volatility since Trump’s win, in India, major exchanges like WazirX, CoinDCX, and BitBNS have seen a 30-40 per cent increase in trading volumes in 2025.

Retail investors, especially millennials and young professionals, are increasing their crypto exposure amid expectations of a bullish market.

Analysts have noted that some Indian investors, seeking higher returns, have already begun diverting funds from traditional assets like gold and equities into cryptos, while even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) are gaining traction among speculators.

India’s Crypto Trend & Growing Sophistication

However, unlike the global crypto markets, which seem to heavily react to US policy changes, the Indian crypto market exhibits distinct trends and dynamics, appearing to be also interlinked with domestic factors.

CoinSwitch reports that in Q1 2025, Bitcoin remains the top choice for investors, making up 6.9 per cent of total investor holdings, followed closely by Dogecoin and Ethereum, while Ripple has emerged as the most traded asset, accounting for 13.3 per cent of total trades, rising 8 positions since last December.

Ripple beat both Shiba Inu and Bitcoin in terms of crypto trading in India.

There also appears to be a shift towards crypto futures trading. Analysts said lower capital requirements and potentially favourable tax efficiency compared to spot trading are driving this trend.

This suggests Indian investors are also exploring more complex financial instruments within the crypto domain.

Trump’s Crypto Promise An Attraction?

What’s driving this global (as well as Indian) trend? During his poll campaign, Trump positioned himself as a supporter of blockchain innovation, contrasting with the stricter regulatory approach under the Biden administration.

His victory immediately led to a 10-15 per cent spike in Bitcoin (BTC) and Ethereum (ETH) prices, triggering renewed interest among Indian investors.

India: A Cautious Approach

However, despite the global optimism, the Indian government’s position on crypto remains cautious, as it is yet to legislate clear-cut regulations.

In fact, the RBI has in the past expressed concerns over crypto’s risks, something which crypto traders hope will now be influenced by Trump’s policies towards a more accommodative approach.

Indian financial analysts have generally maintained that while global trends matter, local factors remain paramount for Indian investors. The shift towards futures trading noted by Avinash Shekhar, the CFO of crypto futures trading platform Pi42, for example, appears driven more by tax considerations and leverage opportunities within India's specific regulatory context than by US policy shifts.

Indian Regulations Expected To Be Relaxed

While India has yet to enact a comprehensive law recognising cryptocurrencies as legal tender, the government has taken significant steps toward regulating the sector. Officials pointed out that, "Through the Finance Act of 2022, we have formally categorised a segment of digital assets as Virtual Digital Assets (VDAs), bringing them under the purview of income tax regulations. So gains are subjected to both tax and tax at source."

In a bid to tighten oversight, cryptocurrency exchanges and wallet providers in India are now also subject to the Prevention of Money Laundering Act (PMLA), 2002.

Crypto platforms have been designated as reporting entities, which means they have to implement Know Your Customer (KYC) protocols, maintain transaction records, and flag suspicious activity to the Financial Intelligence Unit-India (FIU-IND). "These moves bring our regulatory practices at par with international standards set by the Financial Action Task Force (FATF)," said Finance Ministry officials.

"What we are trying to do is regulate the market and not ban crypto, as was the mood in the beginning of the last decade. We will of course have to relax rules as we go along, and we are studying that as crypto exchanges and trading platforms have been approaching us on that," said the officials. 

The Finance Ministry will be consulting RBI on the issue and will take "appropriate steps to make the market more vibrant and yet regulated. But we will also be looking out for artificial bubbles being created... We don't want any public outcry on a sudden crypto collapse in India either," they said.