Cryptocurrency continues to attract investors in India despite regulatory uncertainty and a relatively high tax burden on Virtual Digital Assets (VDAs).
An OECD report released in June 2026 identified India and South Korea among the countries that received the largest absolute inflows into crypto assets during the 12 months to June 2025.
The domestic ecosystem has also expanded. Around 50 crypto exchanges were registered with India’s Financial Intelligence Unit by 2026. Industry estimates put the number of Indian crypto investors at between 70 million and 90 million, although the number of active participants is believed to be considerably smaller.
Data cited from the Finance Ministry indicates that the value of VDA transactions in India reached ₹1,09,580 crore between FY23 and FY25, representing cumulative growth of 131%.
Industry participants point to younger investors as an important part of the expanding market. Investors between 18 and 45 are generally viewed as having a higher appetite for risk, while participation among younger people from smaller towns is also increasing.
The continued growth comes even as India’s regulatory framework for crypto assets remains different from that applied to traditional financial investments. Tax rules and compliance requirements have also shaped how investors approach digital assets.
With adoption continuing to expand, the debate over whether India needs a more comprehensive regulatory framework for cryptocurrencies and other VDAs is likely to remain an important part of the financial policy discussion.
