Crypto’s next chapter: Regulatory sandboxes, AI co-pilots and the rise of derivatives

At TechSparks 2026, industry experts Rajagopal Menon, Satish Mishra, and Sharat Chandra discussed the evolving crypto landscape, regulatory clarity, and the growing role of AI in trading. Menon highlighted the growth of Indian crypto markets during the 2021-22 bull run, reaching close to $48 billion in transactions. However, taxation measures introduced in the subsequent Budget have put domestic exchanges at a disadvantage compared to foreign platforms that do not face the same requirements.

The conversation shifted to the need for regulatory clarity, with Chandra pointing out that exchanges have helped educate investors about crypto assets and risks, but regulatory gaps remain. He suggested that regulatory sandboxes could help address these challenges and encourage innovation in the digital asset native fintech sector. Tokenization of corporate bonds was cited as an example of potential applications.

Mishra discussed the operational challenges of building crypto infrastructure that can handle continuous trading activity 24/7. He shared how Pi42 had to build a platform specifically for derivatives rather than adapting a spot-trading system, as demand for derivatives outpaced infrastructure development. Mishra emphasized the importance of embedding risk management processes to ensure smooth user experiences, including simplified KYC processes and AI-powered trading tools like WazirX AI.

The panelists agreed that while AI can analyze large volumes of market data and spot patterns, it should support human decision-making rather than make trading decisions autonomously. They emphasized the importance of regulatory sandboxes, investor education, and risk management to ensure responsible participation in the crypto market.