India’s crypto growth continues despite regulatory delays, says CoinDCX CEO

India may still be lagging behind countries like the U.S. and the UAE when it comes to crypto regulation, but meaningful progress is underway, according to Sumit Gupta, CEO and co-founder of CoinDCX, one of India’s largest cryptocurrency exchanges. In an exclusive interview with CryptoNews, Gupta expressed cautious optimism, pointing to recent developments like clearer taxation rules and global engagement during India’s G20 presidency.

“India has definitely made progress,” Gupta said, noting improvements in areas like KYC/AML compliance, advertising disclosures, and its recent adoption of the Crypto-Asset Reporting Framework (CARF), which aims to improve cross-border transparency starting in 2026.

A Need for Long-Term Vision

Despite these positive steps, Gupta believes India still lacks a long-term roadmap—something that’s becoming increasingly necessary as other jurisdictions race ahead. Countries such as the United States, United Kingdom, and United Arab Emirates are already integrating crypto more strategically into their financial systems, with regulations designed to encourage both innovation and consumer protection.

Gupta argues that for India to compete globally, it must develop a consistent and phased regulatory approach. One proposed solution is the formation of a Parliamentary Select Committee on Crypto Assets, which would bring together lawmakers, regulators, and industry experts to craft a balanced, future-facing policy.

Cross-Ministry Collaboration Could Be Key

To ensure consistency and alignment across sectors, Gupta also recommends forming an Inter-Ministerial Group on Web3, involving key ministries like finance, commerce, and information technology. Such a group could bridge regulatory gaps, reduce confusion, and make India’s crypto environment more cohesive and supportive of long-term innovation.

He stressed that while regulation must address risks, over-regulation or uncertainty can hurt investor confidence, stall institutional involvement, and push startups abroad.

A Thriving Ecosystem Waiting to Be Unleashed

Despite the regulatory delay, India already holds one of the largest crypto investor bases in the world, with more than 1,200 Web3 startups and a growing pool of blockchain developers. According to Gupta, India has the potential to be a global blockchain leader, especially if given the right policy environment.

With appropriate support, the Indian Web3 sector could create over 800,000 jobs by 2030, increase exports through decentralized innovation, and vastly improve access to digital financial services.

“The momentum is clearly on,” Gupta stated, adding that Indian innovation shouldn’t be allowed to flourish elsewhere due to domestic inaction.

Looking Ahead: A Crucial Paper and Global Lessons

All eyes are now on the Indian government’s long-awaited discussion paper on cryptocurrencies, which was initially expected in 2024. Gupta believes the paper will address sector risks and invite public feedback, a necessary step in building smart, inclusive crypto policy.

He also cited the U.S. GENIUS Act, a recently approved stablecoin framework, as a valuable reference point for India as it moves forward with stablecoin regulation, an area still underexplored domestically.