Non-metro India now drives most crypto growth, says Ashish Singhal

CoinSwitch co-founder says tier-2 and tier-3 cities drive 76 per cent of activity as women investors reach 12 per cent of user base

Ashish Singhal, co-founder of CoinSwitch, India’s largest cryptocurrency trading platform, says the country’s crypto adoption is shifting beyond metropolitan centres. Non-metro regions now account for nearly 76 per cent of India’s crypto activity among the platform’s 25 million users, while women investors have grown to represent 12 per cent of the user base. Despite stringent taxation, including a 30 per cent crypto tax and 1 per cent tax deducted at source (TDS), the market remains youth-driven, with investors aged 26–35 comprising 45 per cent of total investments. In a video interview with Peerzada Abrar, Singhal discusses demographic trends, regulatory challenges, and how Indian investors are moving from speculative trading to strategic long-term holdings. Edited excerpts: 

CoinSwitch has seen significant user growth despite a stringent regulatory environment, including the 30 per cent crypto tax and 1 per cent TDS. What specific factors are driving this growth, and how has user behaviour evolved? 

The Trump administration’s pro-crypto stance has created positive momentum globally, with Bitcoin reaching nearly $125,000. This confidence is driving adoption in India despite the 30 per cent tax and 1 per cent TDS.

 

We are seeing a significant geographic shift. Non-metro India now powers the majority of crypto growth — 33.2 per cent of users come from tier-2 markets, and 43.4 per cent from tier-3 and tier-4 markets. Peak trading activity occurs between 10 pm and 11 pm, after people return home from work.

 

Indian investors are shifting from fear of missing out to strategy. When markets dip, people are buying the dip and investing more in blue-chip tokens like Bitcoin and Ethereum rather than meme coins. States like Uttar Pradesh, Maharashtra, and Karnataka lead in buy-the-dip activity.

 

Women participation stands at 12 per cent, with Andhra Pradesh having more women investors than men. Bihar shows strong interest in small- and mid-cap cryptos.

 

Are you seeing different adoption patterns now compared to the past?

 

Users previously sought quick gains but now favour blue-chip tokens — Ethereum, Bitcoin, Solana, XRP — for consistent long-term returns. The asset class has evolved from speculation to sustainable investment. We are seeing people buying dips and doing systematic investment plans (SIPs) in these tokens for long-term wealth creation.

 

What surprises emerged in your analysis of age and gender demographics? Are younger investors adopting crypto differently than millennials, and what is driving the increase in female participation?

 

The 26–35 age group contributes 45 per cent of total investments, up from 40 per cent last year. These younger investors live on the internet, track global regulatory developments, and trust the technology’s long-term viability.

 

Women participation is increasing as crypto becomes more mainstream. In states like Andhra Pradesh, women now outnumber men among crypto investors. The shift from an early-adopter asset class to a household investment is building broader trust in the ecosystem.

 

Beyond Bitcoin and Ethereum, what emerging cryptocurrencies are gaining traction among Indian investors?

 

Dogecoin remains the second favourite among Indian investors, driven by Elon Musk’s support. While investment in blue-chip tokens like Bitcoin, Ethereum, and Solana is increasing, India’s affection for meme coins persists. Investors allocate portions of their portfolios to meme coins like Doge, Pepe, and Shib alongside established cryptocurrencies, showing a balanced approach to risk.

 

As we head into 2026, how do you see India’s crypto regulatory framework evolving? What regulatory clarity would be most impactful for accelerating mainstream adoption?

 

India needs three regulatory priorities. First, classification of crypto assets to determine applicable rules. Second, easing taxation. While global exchanges are seeing 2025 volumes exceed 2021 highs, India remains below 2021 levels — clear evidence of taxation’s impact.

 

Third, regulation of exchanges. Currently, exchanges operate under self-regulation, meaning security standards vary drastically between platforms. Users cannot assess which exchanges properly safeguard their funds. Appointing a regulator would remove this disparity and establish clear guidelines for cybersecurity, Prevention of Money Laundering Act (PMLA) compliance, and custody standards. This would protect users by ensuring any exchange handling their money meets minimum security requirements.

 

India reportedly has one of the highest crypto adoption rates globally despite regulatory constraints. What is your assessment of India’s potential to become a major crypto economy?

 

Any jurisdiction needs two things to become a crypto hub: clear regulations and talent. India ranks second globally in Web3 developers but lacks the regulatory clarity of countries like the US, Japan, Singapore, and Dubai. Once India provides regulatory certainty, combining it with our existing talent pool would make us a major Web3 hub.

 

How do Indian investors respond to global crypto events like Fed rate cuts or market crashes?

 

Indian investors closely monitor global triggers like Fed rate cuts. When uncertainty around rate cuts causes price drops, Indians buy the dip. When certainty on rate cuts drives prices up, they book profits. India’s response aligns with global market behaviour.

 

During Diwali, we have seen a 13 per cent uptick, but this also has to be taken with a pinch of salt because a lot of the crypto market is driven by global sentiment.

 

Looking ahead to 2026, what key trends do you anticipate will shape India’s crypto market?

 

We launched CoinSwitch Alpha six months ago as an investment vehicle for high net worth individuals (HNIs) and family offices, and adoption has been strong. HNIs and family offices have historically avoided crypto due to taxation and regulatory uncertainty. The Trump administration’s pro-crypto policies and BlackRock ETF’s success are building confidence among Indian HNIs and the diaspora. I believe 2026 will see significant institutional wealth flowing into crypto.