Amid the ongoing bull run in a frenzied post-U.S. election atmosphere, the Indian crypto community stands the crossroads, where there is a sense of uncertainty when it comes to government regulations, mixed with a sense of optimism, that crypto adoption is set to grow manifolds in world’s most populous nation.
India collects 30% tax against any crypto earnings pus an additional 1% Tax Deducted at Source (TDS) and as per reports, the Indian government is mulling over a blanket ban on crypto to promote their Central Bank Digital Currency (CBDC). Furthermore, the recent case of WazirX hack has further dented the trust in crypto in the Indian community.
Yet, the crypto community stands eternally hopeful that the tax rates might come down and pave way for further adoption of crypto in India. The founder of Cashaa- crypto firm and banking platform, Kumar Gaurav spoke to The Crypto Times editor Vaibhav Jha, about the need for clearer regulations from the Indian government and the need for further adoption of crypto in India.
We have published excerpts from the interview with Kumar Gaurav below:
The Crypto Times: As a founder of Cashaa, you have witnessed it grow exponentially in the past few years. Tell us about your experience with Cashaa, what dynamic changes did you witness in the web3 sector?
Kumar Gaurav: My journey with Cashaa has been nothing short of transformative, both for the company and the wider Web3 space. When I started Cashaa, the Web3 sector was still largely speculative, with blockchain viewed primarily as a technology for niche enthusiasts. In those early days, building trust with traditional financial institutions was a major challenge—most were hesitant to engage with crypto, often citing regulatory concerns. Over the years, I witnessed a gradual yet pivotal shift as blockchain gained traction as a legitimate means to decentralize financial services, democratize access, and redefine transparency. With Cashaa’s focus on bridging crypto and traditional banking, we were able to tap into this evolution and expand services for over 500 crypto businesses globally.
The Crypto Times: You have mentioned on your Twitter profile that you are going to announce another major project. Could you give us a glimpse of what you meant by your statement?
Kumar Gaurav: As I have stepped down as CEO and taken all measures to ensure Cashaa’s continued success, I am excited to watch the team thrive in this new era. I will continue to support the Bitcoin and blockchain space, and as I embark on my first summer break in eight years. I look forward to the next market cycle and all that it will bring. While I can’t reveal too much just yet, I can assure you that this upcoming project is close to my heart and aims to serve humanity.
The Crypto Times: When it comes to the underbanked population in South Asia, especially India, how do you view the prospect of decentralised finance filling that gap?
Kumar Gaurav: When we consider the underbanked population in South Asia, particularly in India, the prospect of DeFi filling the gap is incredibly promising. Traditional banking systems often overlook marginalized communities, leaving millions without access to essential financial services. DeFi offers a transformative opportunity to democratize finance by providing accessible, transparent, and cost-effective solutions. Through blockchain technology, individuals can engage in peer-to-peer transactions, secure loans, and invest without the need for intermediaries, significantly reducing costs and barriers to entry. Additionally, with the increasing smartphone penetration in India, the ability to access DeFi platforms via mobile devices aligns well with the needs of this demographic.”
The Crypto Times: India is about to release a discussion paper on crypto regulations. Do you think India will adopt a liberal view on crypto and lower the tax rates or introduce an even harsher stance?
Kumar Gaurav: India’s upcoming discussion paper on crypto regulations presents a pivotal moment for the future of digital assets in the country. While the government has historically taken a cautious approach, it seems to recognize the potential of blockchain technology and cryptocurrencies for economic growth and financial inclusion. There is hope that India may adopt a more liberal stance, focusing on clear guidelines that encourage innovation while ensuring consumer protection and regulatory compliance. Lowering tax rates could further incentivize the adoption of cryptocurrencies, fostering a vibrant ecosystem. However, given the complexities surrounding investor protection and potential misuse, there remains a possibility of stricter regulations.”
The Crypto Times: The recent WazirX hack of $234 Million has dented the crypto popularity among Indian users with clouds of uncertainty and fear engulfing the community. How do we recover and proceed from here?
Kumar Gaurav: When we look at the recent security breach at WazirX, which resulted in a staggering $234 million loss, it’s essential to recognize that the forensic analysis led by Mandiant found no compromise of WazirX’s IT systems. Instead, the exchange attributed the cyberattack to vulnerabilities within its wallet service provider, Liminal Custody. Moving forward, recovery strategies must focus on prioritizing user security and rebuilding trust within the community. Strengthening security protocols across all exchanges is imperative, involving the implementation of advanced cybersecurity measures, conducting regular audits, and fostering user education on safe practices. Furthermore, clear regulatory guidelines from the government are crucial for establishing compliance and investor protection standards, helping to restore confidence. Engaging users through transparent communication and educational initiatives will also be
vital, alongside promoting innovation in decentralized finance (DeFi) to diversify investment options.
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