India's Crypto Sector Gains Momentum Amid Regulatory Progress

Sumit Gupta, the co-founder and CEO of CoinDCX, has expressed optimism about India's progress in the cryptocurrency sector despite regulatory delays. Gupta noted that India has made significant strides in establishing clearer rules on taxation, Know Your Customer/Anti-Money Laundering (KYC/AML) procedures, and advertising disclosures. He highlighted India's role in advancing the global crypto conversation during its G20 presidency and the upcoming adoption of the Crypto-Asset Reporting Framework (CARF) in 2026, which will enhance cross-border data sharing and transparency.

Gupta emphasized the need for a clear, long-term regulatory roadmap to support both innovation and consumer protection. He suggested that setting up a Parliamentary Select Committee on Crypto Assets and an Inter-Ministerial Group on Web3 could help align crypto policy across various ministries, including finance, IT, and commerce. Additionally, he advocated for reviving and expanding regulatory sandboxes, particularly for Web3 startups, similar to what Singapore has done.

Gupta is optimistic about India's crypto momentum, citing the country's large investor base, over 1,200 Web3 startups, and the world's fastest-growing pool of blockchain developers. He noted that without clear regulatory frameworks, businesses face uncertainty that impacts investor confidence, institutional adoption, and scalability. However, with the right policy support, the 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.

Gupta is awaiting the release of a discussion paper on crypto, which is expected to cover the key risks associated with the sector and seek public comments to build further thoughts around crypto policy. He also mentioned that the recent approval of the GENIUS Act in the U.S. serves as a valuable reference for India, offering policymakers a timely opportunity to observe how global regulatory frameworks are taking shape and to carefully weigh the risks, opportunities, and long-term impact.