Why India Ranks #1 Globally for Crypto Adoption in 2025

What Are the Key Findings from the TRM Labs 2025 Global Crypto Adoption Report?

 

The TRM Labs 2025 Global Adoption Report confirms India’s position at the top, outpacing major economies like the U.S., Vietnam, and Japan, and reveals several global and regional trends for the 2025 period (As of September 23, 2025):

• Global Adoption Surge: Worldwide crypto adoption grew by 52% year-on-year, driven largely by DeFi lending and Real-World Asset (RWA) tokenization.
• Stablecoin Dominance: Stablecoins solidified their role as the backbone of digital assets, constituting 30% of crypto transactions and hitting a record $4 trillion in volume by August 2025, marking an 83% YoY increase.
• South Asian Transaction Volume: The South Asia region, anchored by India, experienced an 80% surge in crypto activity, surpassing $300 billion in total transactions. This growth is primarily powered by cross-border remittances, emerging Web3 gaming economies, and digital asset savings.
• Asia-Pacific (APAC) Growth: The broader APAC region saw its on-chain value transfer jump by 69% YoY, rising from $1.4 trillion to $2.36 trillion, reflecting the aggressive digital asset embrace in emerging economies.
• Developer Momentum: Blockchain developer participation across Asia increased by 35%, with India, Vietnam, and South Korea ranking among the top global contributors to smart contract innovation and DeFi infrastructure.

 

What Specific Factors are Powering India’s Crypto Dominance in 2025?

India’s remarkable leadership in worldwide crypto adoption is built on a foundation of innovation, unparalleled scale, and improving accessibility, overcoming significant tax hurdles. Key accelerating factors include:

• Mass Adoption via Telecom & Fintech Integration: The strategic partnership between Jio and Aptos introduced blockchain-based loyalty rewards to an estimated 500 million users, representing one of the largest real-world Web3 rollouts globally.
• Institutional and Exchange Re-entry: Institutional confidence has returned, highlighted by Coinbase re-entering the Indian market. This was done through a partnership with CoinDCX, investing at a $2.45 billion valuation, following similar re-engagement by platforms like Binance, KuCoin, and Bybit.
• Developer-Led Ecosystem Growth: India is fast becoming a global innovation hub, fostering decentralized technology leaders such as Polygon, Shardeum, and Zetachain, which are scaling their solutions globally.
• Progressive Regulatory Signaling: Authorities have continued to signal a welcoming, structured mindset by working on comprehensive crypto-regulations, such as the proposed COINS Act, and by mandating FIU registration for all offshore Virtual Digital Asset Service Providers (VASPs).

 

How is India Balancing Regulation and Innovation in its Crypto Policy?

Despite the continuation of a 30% tax on crypto profits and a 1% TDS (Tax Deducted at Source) on trades, India’s crypto-activity continues to grow. The government’s core philosophy has matured from potential restriction to structured regulation, establishing a model for other emerging crypto-economies:

• Shifting Government Stance: Finance Minister Nirmala Sitharaman has publicly suggested exploring an INR-backed stablecoin, while Union Minister Jitendra Singh has emphasized the government’s growing interest in utilizing AI and blockchain-driven governance.
• The ‘Regulate, Not Ban’ Model: This balanced approach provides enough regulatory certainty to attract institutional capital and protect consumers without stifling the grassroots innovation and entrepreneurial spirit that has made the country the world’s #1 crypto adopter.

 

Frequently Asked Questions (FAQs)

Why is India maintaining the #1 ranking for global crypto adoption in 2025?

India maintains the #1 ranking in 2025 primarily due to its massive, young, and digitally-native population, coupled with explosive Web3 and developer-led innovation. The country’s strong growth is further fueled by high-volume retail transactions, remittances, and a pragmatic regulatory approach that has shifted toward structured regulation rather than a ban.

 

What is the role of stablecoins in India’s crypto economy according to the TRM Labs 2025 report?

The TRM Labs 2025 report highlights stablecoins as a critical component of global and regional liquidity. While the report focuses on the overall India crypto adoption, it notes that stablecoins represent 30% of total global crypto transaction volume, making them vital for cross-border payments, remittances, and maintaining on-chain liquidity in emerging markets like India.

 

How is the proposed COINS Act expected to impact India’s cryptocurrency laws?

The proposed COINS Act (as of 2025) aims to transform India’s cryptocurrency laws by establishing a clear legal framework and formalizing a compliance pathway for digital assets. This move is expected to attract more foreign investment, provide legal recognition for crypto holdings, and simplify tax and reporting for retail investors, further accelerating the current trend of widespread India crypto adoption.

 

Conclusion

India’s dominance in crypto adoption is a powerful signal of the future of digital assets, demonstrating that grassroots enthusiasm, technological innovation, and a ‘regulate, not ban’ policy can successfully coexist. As of 2025, the data from the TRM Labs Report is clear: India is not just leading; it is establishing the blueprint for how a major emerging economy can strategically embrace Web3. For investors, developers, and global exchanges, this sustained leadership underscores the strategic significance of the Indian market, making timely action and a deep understanding of this dynamic ecosystem essential for future success.