Despite stiff taxes and regulatory fog, India now ranks #2 globally in Bitcoin ownership. According to new data shared by investor Fred Krueger, India holds around 1 million BTC, approximately 5.1% of all circulating Bitcoin. That’s an estimated $120 billion in value at current prices. CoinDCX CEO Sumit Gupta highlighted the milestone in a post on X. “Even with a 30% capital gains tax and 1% TDS, India ranks second globally,” he said. Gupta credited India’s broad retail base for this position and believes friendlier policies could push the country to number one. Retail Power Drives India’s Position Unlike the U.S., which dominates with 7.8 million BTC held across institutions, ETFs, and custodians, India’s strength lies in sheer volume. Millions of small investors have adopted Bitcoin despite regulatory hurdles. Indian users face a 30% capital gains tax on crypto profits and a 1% tax deducted at source (TDS) on transactions. Institutional support remains limited. Yet Indian crypto users continue to accumulate BTC, signaling deep grassroots adoption. The retail-first nature of India’s crypto market suggests a strong long-term commitment from everyday investors. Most holdings are modest in size, but the total adds up fast. Clearer Policy Could Tip the Scale Gupta emphasized that India has the potential to become the global leader in Bitcoin ownership. But that path depends on regulatory reform. “We just need friendlier policies, taxes, and clearer frameworks,” he wrote. With those improvements, Gupta believes India could surpass the U.S. and reach the top spot. Regulatory confusion still clouds India’s crypto scene. Startups and investors are pushing hard for clarity. They want digital assets officially classified, taxes streamlined, and innovation supported instead of stifled. Sumit Gupta’s post echoed what many in the space have been saying for a while: it’s time for lawmakers to catch up. A Window of Opportunity for India India’s Bitcoin growth signals both potential and urgency. While the U.S. still leads by a wide margin, with 40% of all Bitcoin, India’s trajectory is worth watching. Crypto firms, investors, and policymakers now face a critical moment. With the right moves, India could lead the next wave of Bitcoin adoption, not just follow it.