Exclusive: India has Definitely Made Progress in Crypto Despite Regulatory Lag – CoinDCX CEO

As global jurisdictions such as the US, UAE, and UK are accelerating crypto regulatory clarity, India finds itself at a critical crossroads.

However, Sumit Gupta, co-founder and CEO of CoinDCX, believes that “India has definitely made progress.”

“We now have clearer rules on things like taxation, KYC/AML, and even advertising disclosures,” he noted. Gupta highlighted that India played a significant role in advancing the global crypto conversation during its G20 presidency.

Further, India’s adoption of the Crypto-Asset Reporting Framework (CARF) would enhance cross-border data sharing starting 2026, he added, calling it “a big step toward transparency.”

In an exclusive interview with Cryptonews, Gupta weighs in on how India is still behind some of the more proactive jurisdictions and why a clear, long-term regulatory roadmap is critical for the country to regain its momentum.

“These markets are moving quickly to integrate crypto into their financial systems in a way that supports both innovation and consumer protection,” Gupta said. “What India really needs now is a clear, long-term roadmap.”

India Could Set Up a Parliamentary Crypto Committee, Inter-Ministerial Group

According to Sumit Gupta, building a Parliamentary Select Committee on Crypto Assets could be a good start. The forum would comprise lawmakers, regulators and industry experts, working to “build a phased, comprehensive regulatory approach.”

Gupta called for an Inter-Ministerial Group on Web3, which would help align crypto policy across ministries, including finance, IT and commerce.

“We should also revive and expand regulatory sandboxes, especially for Web3 startups, like Singapore did early on.”

India’s Crypto Momentum is “Clearly On”

Gupta emphasized that India needs “clear and timely regulatory frameworks.” This would encourage research, funding, and ecosystem growth, he said.

“Without them, businesses face uncertainty that impacts investor confidence, institutional adoption, and the ability to scale,” Gupta noted.

However, he is optimistic that the momentum is “clearly” on, given India’s largest investor base, over 1,200 Web3 startups, and the world’s fastest-growing pool of blockchain developers.

Besides, the risk is not just losing competitiveness, he noted, adding that “homegrown innovation could flourish elsewhere.”

“[India] has the chance to lead blockchain innovation, and with the ecosystem’s readiness and policymakers’ support, we are confident this future is within reach.”

Additionally, with the right policy support, Indian Web3 ecosystem could create over 800,000 jobs by 2030, drive export-oriented innovation, and improve access to financial services through on-chain infrastructure.

Sumit Gupta says that he is waiting for the discussion paper on crypto this month. As reported by Cryptonews earlier, India’s Economic Affairs Secretary Ajay Seth noted that the government is reportedly reassessing a discussion paper on cryptocurrencies, which was initially due for release in September 2024.

According to Gupta, the paper “will cover the key risks associated with the sector and seek public comments to build further thoughts around crypto policy.”

US Stablecoin GENIUS Act “Serves as a Valuable Reference for India”

When asked about how India is prepared to regulate stablecoins effectively, Gupta noted that the recent approval of the GENIUS Act in the U.S. is a “clear sign” and a “valuable reference for India.”

“It offers policymakers a timely opportunity to observe how global regulatory frameworks are taking shape and to carefully weigh the risks, opportunities, and long-term impact.”

He said that Indian policymakers should reflect on such regulations as a “timely reference point” and thoughtfully consider them for long-term implications.

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