While China's Deepseek sparked a deep sell-off in US tech stocks and into the Asian markets, the same euphoria can be seen in cryptocurrencies. Even before Trump's arrival as the president, his pro-crypto stance helped improve crypto's global outlook. While Trump wants America to become the 'crypto capital' of the world, Asian countries are slowly building their crypto bases. 

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Hong Kong & Singapore have emerged as frontrunners, capitalising on the renewed global interest in digital assets. Hong Kong regulators are betting on 'global liquidity' to drive investments, with plans to introduce riskier products like derivatives and margin trading. Meanwhile, Singapore has taken a more structured approach, issuing 30 'major payment institution' licences for digital asset firms. Other Asian markets, including Malaysia, Thailand, Japan, and South Korea, are also considering regulatory shifts.

Non-metros lead India's crypto trading

Coming to the fastest-growing economy in the world, India has been more sceptical than others regarding crypto adoption. Crypto taxes in the region are already the highest globally, with little or no respite so far. Still, India recorded $1.9 billion in crypto trade in the October-December quarter of 2024. 

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This surge comes as more traders look for alternative income sources. Many are turning to crypto as job growth and wage hikes lag behind economic expansion. Traders are now shifting to crypto amid tighter regulations on equity derivates. 

Data from Coinswitch reveals that 7 of the top 10 cities driving crypto activity in 2024 were lower-tiered hubs like Jaipur, Lucknow, and Pune. This mirrors a trend seen in the stock market, where smaller cities are driving trade volumes. To facilitate traders, crypto trading academies are also gaining traction. Consulting firm Grant Thornton Bharat projects India's crypto market to grow at a growth rate of 18.5 per cent.

Meanwhile, the Reserve Bank of India continues to warn against risks. The RBI flagged concerns over macroeconomic and financial stability linked to widespread crypto adoption. This has not deterred retail traders, who continue to flock to the new financial opportunity. Whether the government tightens its grip or embraces the sector remains a key question for Indian investors.