$2.6 bn in 2024, $15 bn by 2035: Growing unchecked, no guardrails, Pg11

Key Highlights:

• India's crypto market was valued at $2.6 billion in 2024 and is projected to reach $15 billion by 2035.
• Gen Z (18-25) constitutes the largest portion of India's crypto investors at 37.6% as of Q3 2025.
• Cryptocurrencies are digital assets using blockchain technology, lacking regulation and government backing in India.
• The RBI opposes cryptocurrencies due to concerns about financial stability and potential for money laundering.
• There is currently no central law regulating cryptocurrencies in India, leading to policy uncertainty.
• Scams involving fake exchanges and "pump and dump" schemes are common in the crypto market.

Detailed Insights:

• The Indian crypto market is experiencing rapid growth, driven by increasing adoption among young investors, particularly in metropolitan and emerging cities.
• Unlike mutual funds regulated by SEBI, crypto investments in India are unregulated, lacking investor protection and prone to high volatility.
• The RBI's concerns include the potential undermining of the rupee's sovereignty and the circumvention of capital flow management measures due to widespread crypto use.
• The government introduced a 30% tax on income from virtual digital assets and a 1% TDS on crypto transactions in 2022 to discourage retail investors.
• Global regulatory approaches vary, with the EU's MiCA providing a unified framework, the US advancing oversight through multiple agencies, and China imposing a near-total ban.
• Investors are advised to conduct thorough research, use secure practices like two-factor authentication, and be cautious of schemes promising high returns to mitigate risks.

Key Concepts Involved:

• Cryptocurrency: Digital or virtual currency secured by cryptography, making it difficult to counterfeit or double-spend.
• Blockchain: A decentralized, distributed, and public digital ledger used to record transactions across many computers.
• RBI (Reserve Bank of India): India's central bank, responsible for regulating the country's monetary policy and financial system.