Key Highlights
- Domestic exchanges struggle to regain trust after the WazirX hack, giving global platforms the edge.
- Ashish Singhal’s CoinSwitch launches ₹600 crore CoinSwitch cares program to help early investors recover losses.
- India’s crypto market is poised for growth with tech adoption, Web3 innovation, and hybrid exchange models.
India’s crypto industry has grown rapidly over the past few years, attracting millions of retail investors and emerging as one of the largest user markets globally. However, domestic exchanges continue to struggle with adoption, trust, and competition from global platforms.
In an exclusive conversation with The Crypto Times, Sr. Analyst Gopal Solanky spoke with Ashish Singhal, Co-Founder and CEO of CoinSwitch, about the current state of the Indian crypto market.
“2025 has been one of the best years in terms of adoption of crypto,” Singhal said. “We have seen the US taking the lead, forming the right regulations, which reverberated across the world. Everyone wants to be part of this space, bringing the right policies, and you’re seeing the same enthusiasm across users.”
He also added, “Although in terms of volume, I will not say that 2025 is our highest, but it is among the best years that we have at CoinSwitch. The recent dip hurt a few investors, but it was also a point where users are buying more, because now they understand that this asset class is here to stay.”
Singhal noted that market cycles are now better understood by investors. “Yesterday’s dip was among our highest numbers of investors putting in more money to average their prices. People have learned over cycles how to invest in crypto,” he explained.
Gopal probed the impact of India’s taxation policies on crypto growth. Singhal explained that the 2022 taxation had a significant effect: “In 2022, every exchange was seeing volume drop. Global markets dropped by almost 60%, but the Indian market dropped almost 90%. The delta was because of taxation. First, you can’t offset your losses. Second, you can’t trade often because every transaction requires 1% TDS. High-frequency traders went away, markets became illiquid, and retail users were hurt because the buy-sell price difference became very high.“
He added, “Over time, global markets recovered to 80–90% of pre-2021 volumes, but India is only at about 50%. With the right taxation policies, the crypto market in India can grow much further.”
The wild west of local exchanges
The Indian exchange ecosystem has faced several challenges, ranging from regulatory burdens to security concerns. Solanky asked Singhal about the struggles domestic exchanges face.
“WazirX was an older player in India. Early crypto adopters losing their trust is equivalent to India losing its footing in the crypto ecosystem,” Singhal said. To address this, CoinSwitch launched the cares program, dedicating ₹600 crore to help victims of the WazirX hack rebuild their portfolios.
“A lot of users have actually signed up for that and are gaining a lot of money through that program already,” he added.
Singhal emphasized that regaining trust is critical not just for one exchange but for the entire ecosystem. “If these users can recover their losses in one way or the other, they can regain trust and participate in the crypto ecosystem again. Their commitment and enthusiasm should not be lost because of mistakes by someone else,” he told Gopal.
Global exchanges vs Indian exchanges: Volume, users, and market dominance
On being asked why international exchanges such as Binance and Coinbase continue to dominate the Indian market despite strong local players, Singhal attributed this largely to regulatory arbitrage.
“Indian exchanges have to follow TDS and taxation rules, while many international exchanges are not fully bound by the same regulations. This gives users a reason to migrate offshore,” he explained.
However, Singhal clarified that he does not view global platforms as a threat. “We don’t mind having Binance, Coinbase, and others operating in India because more choices for the user actually helps them. Ultimately, the user ends up winning. It is not about competition; it is about providing better products and services while adhering to regulations.”
What is stopping users from trusting Indian exchanges?
During the conversation, Solanky asked what factors prevent Indian users from fully trusting domestic exchanges.
Singhal listed several reasons:
- Regulatory Complexity: “High TDS and the inability to offset losses discourage active trading.”
- Security Concerns: “Hacks like WazirX hurt user confidence.”
- Global Alternatives: “International platforms provide better liquidity, user experience, and flexibility.”
He noted that addressing these challenges requires a mix of user-centric initiatives and regulatory clarity. “If users can recover their losses and regain trust, they can re-engage with domestic exchanges. Programs like CoinSwitch cares are critical for rebuilding confidence,” he said.
Further, on the long-term impact of the WazirX hack on Indian crypto adoption, Singhal said, “The WazirX hack was a turning point. Early adopters lost trust, which is equivalent to India losing its footing in crypto,” Singhal explained. “If users can rebuild their portfolios through initiatives like cares, they regain confidence in the ecosystem. This benefits not just one exchange, but the entire Indian crypto market.”
What users want
When asked about user expectations, Singhal said that security, transparency, and usability are top priorities.
“Users want products that are secure, reliable, and simple to use. They don’t need to understand blockchain or DeFi mechanics—they want the benefit,” he told Gopal.
CoinSwitch has attempted to address these needs by allowing users to access DEX tokens directly with INR, eliminating complex wallet setups and gas fees. “This approach blends the advantages of centralized and decentralized exchanges,” Singhal added.
Future outlook: India as a global crypto leader
When asked about user expectations, Singhal said that security, transparency, and usability are top priorities.
“Users want products that are secure, reliable, and simple to use. They don’t need to understand blockchain or DeFi mechanics—they want the benefit,” he shared.
CoinSwitch has attempted to address these needs by allowing users to access DEX tokens directly with INR, eliminating complex wallet setups and gas fees. “This approach blends the advantages of centralized and decentralized exchanges,” Singhal added.
Final words
Solanky concluded by asking about the long-term prospects for India’s crypto ecosystem. Singhal said, “India’s tech-savvy population and robust digital infrastructure position the country to lead in crypto adoption. With the right infrastructure, regulatory clarity, and user-first initiatives, the crypto revolution in India is bound to happen.”
This exclusive interview with The Crypto Times brings into focus the struggles and possibilities facing Indian crypto exchanges. Local platforms are dealing with regulatory challenges, security risks, and strong competition from international players.
At the same time, by focusing on user needs, building innovative products, and operating within a clear regulatory framework, India has a real chance to become a global leader in the crypto space over the next few years.
Also Read: Spain Follows India’s Footsteps in Crypto Tax, Proposing Up to 47%
