Crypto's Mainstream Entry in India Boosted by Bitcoin ETF Approval

Edul Patel, Co-Founder and CEO of Mudrex, engaged in a candid discussion with Hardik Katariya, Founder and CEO of The Crypto Times, to explore the future trajectory of cryptocurrency, both in India and globally. The conversation delved into the evolving landscape of digital assets, highlighting their growing acceptance and potential to reshape the financial ecosystem.

Cryptocurrency in India has transitioned from a niche interest to a viable option for wealth building, particularly among those excluded from traditional investments. Patel noted that the interest in crypto is surging not only among Gen Z but also among Millennials and individuals in his and Katariya’s age group. The accessibility of crypto, which offers a low-barrier entry point compared to traditional investments like real estate, is a significant draw. This shift is not just individual but systemic, marked by the approval of Bitcoin ETFs in December 2023, which signaled crypto’s entry into the financial mainstream.

Reflecting on the turbulent past of the crypto industry, Patel acknowledged the “dark ages” of 2022–2023, during which many fraudulent players were weeded out, leading to a more transparent and credible ecosystem. The approval of ETFs has boosted investor confidence, with Bitcoin ETFs alone seeing significant inflows. Patel predicted that Bitcoin’s price could peak near $150,000, with strong support around the $95,000 mark, driven by steady institutional participation.

While Bitcoin often steals the spotlight, stablecoins are quietly revolutionizing global finance. Patel emphasized their transformational power, particularly in cross-border remittances. India, being the largest remittance-receiving country, stands to benefit significantly from stablecoins, which offer near-instant, low-fee transactions. However, India’s tax rules, which treat stablecoin transactions as crypto sales, remain a bottleneck.

India’s crypto journey has been marked by dramatic shifts, from the early days of no platforms to outright bans and now towards structured regulation. Patel traced this arc, noting the Supreme Court’s reversal of the RBI ban in 2021, followed by new tax frameworks in 2022 and regulatory engagement in 2023. By 2024, India was leading G20 crypto policy dialogues, signaling a significant U-turn in its stance on crypto. More regulatory clarity is expected in the coming months, with a discussion paper anticipated to be released soon.

Katariya raised the issue of crypto taxation ahead of Budget 2025, but Patel shifted the focus to use cases and innovation, emphasizing the need to move beyond transactional issues like TDS and tax codes. He proposed that the industry should concentrate on how crypto can help elevate India, rather than getting bogged down by tax-related concerns.

The discussion also touched on the potential role of banks in the crypto space. Katariya suggested that banks could offer crypto products, which Patel agreed is likely. Such moves could bring massive volumes into the sector, although trust remains a hurdle, especially after incidents like the WazirX hack. Patel emphasized the need for stronger frameworks and education to build trust in the crypto ecosystem.

Patel’s final message was clear and hopeful: crypto is not just a financial product but a national opportunity. He highlighted how crypto can support India’s journey toward becoming a $5 trillion economy by blurring the lines between asset, currency, and infrastructure. As Patel concluded, there are direct, clear pathways for crypto to drive economic growth in India. The foundation is being laid for something big, with leaders like Patel pushing the conversation forward from taxation to transformation. The question now is not if India will embrace crypto, but how boldly it will lead the charge.