As India's crypto ecosystem looks forward to 2026 with much anticipation, stakeholders are hopeful that the year will bring some positive changes, especially regarding clarity on the regulatory front and taxation. Despite ranking number one globally in crypto adoption, it lacks clear regulations around crypto, which is hurting the new-age industry.  Though India lacks regulatory clarity on crypto, it ranks among the top in blockchain and Web3 developer share, and other key metrics such as crypto adoption, thanks to its large, young user base supported by a crypto-fluent middle class and increasing institutional interest.

However, despite India's slow progress on the regulatory front, institutional validation globally, and an evolving regulatory conversation are reframing crypto from 'speculative' bets to a legitimate component of modern investing portfolios globally. In this interview, Sumit Gupta, Co-Founder of CoinDCX, offers a grounded view of how India’s crypto market has evolved since 2024, and talks about the crypto industry's expectations from the upcoming budget 2026. From clear regulations and a structured roadmap to parity between domestic and offshore players, and a recalibration of VDA taxation, he outlines how the government should shape India's crypto future. 

1. What key trends do you expect to shape India’s crypto ecosystem in 2026?

The year 2025 has already laid a strong foundation for crypto, both globally and in India. The conversation around digital assets has fundamentally shifted. What institutional investors once dismissed as speculative is now being seriously evaluated as part of portfolio construction across global financial markets.

In India, this progress has been building steadily since 2021. Early adoption was driven largely by younger users, many under 25, who were comfortable with new technology. Today, the profile of the crypto investor looks very different. As exchanges have made crypto investing as simple as any mainstream financial app, we are seeing growing participation from investors who already have experience across equities, mutual funds, and other asset classes. The average age of a CoinDCX investor is now around 32. 

More importantly, our data shows a clear preference for Layer-1 assets, indicating that investors are focusing on fundamentals before allocating capital. Looking ahead, 2026 will mark the next phase of this evolution.

2. What are your top expectations from the Union Budget for the crypto and Web3 sector?

India has already taken meaningful early steps. Requiring Virtual Asset Service Providers to register with the Financial Intelligence Unit and comply with KYC, transaction monitoring, and reporting norms has helped address AML and CFT risks. These measures bring structure, accountability, and transparency to the ecosystem. At the same time, data from Chainalysis consistently places India at the top of global crypto adoption, highlighting the scale and seriousness of participation in the country.

What the industry is asking for now is clarity. First, a structured consultation process with defined milestones would help businesses plan responsibly. Even a phased regulatory roadmap would provide direction for long-term investment, hiring, and innovation. 

Second, there is a need for parity between domestic and offshore players. Ensuring that all platforms serving Indian users follow the same tax and compliance standards would reduce regulatory arbitrage and reward those operating transparently under Indian law. Finally, the industry continues to seek a recalibration of VDA taxation, particularly the 1 percent TDS. A reduction to a lower rate could improve liquidity, reduce friction, and increase onshore participation without compromising traceability or oversight.

3. How did 2025 compare to 2024 in terms of user adoption and market maturity for crypto in India?

If I compare 2025 to 2024, the biggest shift was not scale, it was behaviour. The year 2025 was the year India moved beyond cautious exploration and entered a phase of structured, disciplined growth. Investor confidence strengthened, participation became more intentional, and the market started behaving like a financial ecosystem rather than a speculative playground. 

Globally, 2025 brought institutional validation. Bitcoin crossed USD 100,000 and briefly moved beyond USD 120,000. Spot Bitcoin ETFs attracted more than USD 60 billion in inflows. These developments changed how crypto was perceived, not just by institutions, but by everyday investors as well.

India’s crypto ecosystem is becoming more resilient, more transparent, and more aligned with long-term participation. From our vantage point, this is the strongest signal yet that crypto in India is moving into its next phase.

4.  How is CoinDCX educating Indian investors on responsible crypto usage while also shaping a credible, compliant narrative for policymakers on crypto’s role in India’s financial future?

Crypto moves fast, and without the right context, it is easy for decisions to become emotional. That is why we position ourselves as a crypto coach, focused on building practical financial literacy around digital assets. Through video tutorials, explainers, and in-app education, we help investors understand risk, volatility, and market structure, and encourage long-term, disciplined participation. For instance, we advise new investors to start with blue chip tokens such as Bitcoin and Ethereum before exploring the other tokens. At the same time, we engage policymakers with the same mindset of transparency and responsibility.