India’s Crypto market has entered its next chapter

India's cryptocurrency market is entering a new phase as digital assets transition from speculation to practical use and long-term engagement. Founders who started in 2018, when the ecosystem was nascent and unfavorable, view this development as a positive sign. In 2018, the main hurdle was access; now, the focus is on building infrastructure, trust, and scale.

Despite fragmented access, changing regulations, and a complex taxation system, Indian users remain committed to participating in the crypto market. The creation of compliant INR on and off-ramps is a significant development, bringing digital assets closer to the mainstream financial system. Coinbase's return to India is crucial, signifying that global capital, technology, and expertise now recognize India as a significant market.

This growth is not limited to trading; family offices, professional investors, entrepreneurs, fintech users, and a digitally native generation are exploring digital assets alongside traditional financial instruments. Stablecoins can revolutionize cross-border payments, tokenization can broaden access to global assets, and onchain infrastructure can establish new financial and commercial channels.

As the industry matures and a more diverse set of investors enters, the need for robust regulations becomes increasingly important. The Parliamentary Standing Committee on Finance's recommendation for an interim self-regulatory framework for virtual digital assets is timely. This move supports the industry's growth by bringing consistency, encouraging best practices, and fostering responsible innovation amidst the evolving regulatory landscape.

Founders believe that the future of digital assets in India will be shaped by combining innovation with trust, accountability, and appropriate guardrails, cultivating confidence among investors and establishing the industry's legitimacy for long-term growth. The article is contributed by Sumit Gupta, Co-founder, CoinDCX. The reader must be at least 18 years old to access this site.