Key Highlights
- CoinDCX CEO Sumit Gupta urged India to adopt clearer crypto rules, warning regulatory delays could drive institutional capital away.
- Gupta cited U.S. spot Bitcoin ETF approvals and policy clarity under Donald Trump as major drivers of crypto growth and institutional adoption.
- He said India’s crypto sector needs tax reforms and regulatory certainty to unlock institutional participation and compete in global blockchain markets.
CoinDCX CEO Sumit Gupta has urged Indian policymakers to adopt clearer crypto regulations after Donald Trump reiterated support for the U.S. digital asset industry and pledged to maintain America’s position as the “Crypto Capital of the World.”
In a post on X on Wednesday, Gupta said the U.S. lead in crypto was driven by deliberate policy decisions, including approval of spot Bitcoin ETFs that opened the market to institutional capital.
He argued that India could benefit from a similar regulatory approach, as the country already ranks among the world’s largest crypto adoption and Web3 development markets.
Gupta points to US policy as crypto growth driver
Gupta said the U.S. created conditions for institutional participation through clearer regulation and policy certainty. He cited the growth of spot Bitcoin ETFs, which attracted major asset managers including BlackRock and Fidelity Investments, as an example of how regulatory clarity accelerated capital inflows into the sector.
According to Gupta, Indian institutions and family offices remain interested in digital assets but are waiting for stronger policy signals from regulators and the government before increasing exposure.
He called for tax parity with equities, structured regulations, and broader domestic support for the sector.
Trump reaffirms US support for crypto markets
Trump’s comments were posted on Truth Social, where he defended the role of the Commodity Futures Trading Commission in overseeing prediction markets and said the U.S. would protect its position in the global crypto industry.
He wrote that other countries were attempting to challenge America’s standing in digital assets and said the industry needed continued policy support. Trump also praised CFTC Chairman Mike Selig and described the current U.S. regulatory approach as the “gold standard.”
India remains a major retail crypto market
Gupta argued that India already has several structural advantages in digital assets, including strong retail participation, developer talent, and digital payment infrastructure built around UPI. India has consistently ranked near the top of global crypto adoption indexes in recent years, particularly in retail and grassroots activity.
However, the country’s crypto sector continues to face regulatory uncertainty, including a 30% tax on virtual digital asset gains and a 1% tax deducted at source on transactions. Industry executives have repeatedly argued that the current framework discourages domestic growth and pushes activity toward offshore platforms.
Institutional participation seen as key next phase
Gupta said India’s next stage of crypto growth would likely depend on institutional involvement rather than retail participation alone. He compared the current environment to the period before spot Bitcoin ETFs were approved in the U.S., when large financial firms remained cautious despite growing market demand.
According to Gupta, clearer regulation could allow India to compete more directly in blockchain infrastructure, tokenization, and digital finance, similar to the country’s earlier expansion in the IT services industry.
Also Read: SEBI Launches Blockchain Pilot to Tokenize Corporate Bonds in India
