Top crypto and fintech leaders have called on the Indian government to act fast and bring clear rules for digital assets, warning that the longer India waits, the more it risks losing innovation, investment, and skilled talent to other countries.
At the Business Standard BFSI Insight Summit 2025 held in Mumbai on Thursday, industry experts said it’s time for India to take concrete action — not just to regulate cryptocurrencies, but also to develop an INR-backed stablecoin that could strengthen the country’s position in the global digital economy.
The panel discussion, titled “India’s Crypto Crossroads: Time for a Policy Rethink?”, featured CoinDCX Co-founder and CEO Sumit Gupta, Binance Head of APAC S B Seker, former RBI Executive Director G Padmanabhan, and Bharat Web3 Association Chairperson Dilip Chenoy. All four agreed that India cannot afford to keep waiting while other countries move ahead with crypto regulations.
“The Best Time to Regulate was Yesterday”
CoinDCX CEO Sumit Gupta warned that unclear policies were driving Indian crypto entrepreneurs abroad. “It’s high time that we look at regulations. The best time to regulate the sector was yesterday; the next best is today,” he said.
Gupta shared that “running an exchange in India has been a nightmare because of uncertainty,” adding that “90% of my friends, who are talented IIT graduates, have moved abroad. If we are too late, it will be very difficult to bring that talent back.”
Bharat Web3 Association Chairperson Dilip Chenoy echoed similar concerns, stressing that regulatory delays were costing India both innovation and jobs. “By delaying regulation, we are putting Indian companies at a disadvantage and encouraging them to move overseas,” he said. “A recent study showed that 27% of the biggest Indian crypto product creators have already relocated abroad.”
India’s $1.1 Trillion Opportunity
Chenoy highlighted that India stands to gain massively if it moves swiftly on crypto policy. Citing estimates, he said, “India’s potential $1.1 trillion opportunity by 2032 in the virtual digital asset space” could slip away if policymakers don’t act.
“Eighteen of the G20 nations already have some sort of crypto regulation,” he added. “India took the lead in the G20 to push for a global framework; now it’s time we act on it domestically.”
“The Future of Finance is Digital”
Former RBI Executive Director G Padmanabhan said the financial sector’s evolution toward digitisation and tokenisation makes regulation inevitable. “The future of finance is digital. The future of finance is tokenisation,” he said.
Padmanabhan acknowledged that regulators had been slow to respond to the growth of cryptocurrencies but said it was no longer something India could afford to ignore. He noted that about 70% of IMF member countries are already working on some form of stablecoin regulation, recognizing its potential.
Padmanabhan also noted that while crypto brings complex challenges, particularly around foreign exchange and capital flows, structured frameworks are essential to enable safe cross-border transactions.
Should India Have a Separate Regulator?
Binance APAC Head S B Seker said the effectiveness of regulation was more important than its structure. He explained that while some countries, like Dubai, have established separate regulators, others have integrated crypto oversight within existing financial systems, adding that a new regulatory body may not be necessary if there is a clear constitutional framework in place.
Padmanabhan agreed, adding, “Having a separate regulator may not solve everything. What matters is having the right people with the right attitude who can allow innovation to thrive until issues emerge.”
Push for an INR-Backed Stablecoin
As dollar-backed stablecoins dominate the global market, Indian leaders pushed for a rupee-based alternative to protect monetary sovereignty. Chenoy called it a potential game-changer: “Using stablecoins will put more money in the hands of Indians. This could be our new ‘UPI moment’ in international remittances.”
Padmanabhan cautioned that heavy reliance on dollar-backed stablecoins could give the US dollar undue influence over India’s monetary policy. Gupta stressed that India must act quickly to avoid falling behind as other countries move to internationalize their currencies.
Seker said the growing reach of programmable and interoperable digital dollars makes it essential for India to make the rupee digitally available to stay competitive.
Legal and Regulatory Shifts in India
The BFSI Summit came amid significant legal developments. In a historic judgment, the Madras High Court recently ruled that cryptocurrency qualifies as property under Indian law, capable of ownership, possession, and being held in trust.
“There can be no doubt that ‘crypto currency’ is a property. It is not a tangible property nor is it a currency. However, it is a property, which is capable of being enjoyed and possessed (in a beneficial form). It is capable of being held in trust,” the court said.
The ruling marks the first time an Indian court has officially recognised cryptocurrency as a legitimate, legally protectable asset.
RBI’s Careful Approach to CBDC
Meanwhile, the Reserve Bank of India continues to take a cautious route in rolling out its Central Bank Digital Currency (CBDC). On October 8, Deputy Governor T. Rabi Sankar said the RBI is prioritising cross-border readiness over rushing a domestic retail launch.
“We’re in no hurry because, you see, for this system to launch, you also have to have other countries launching it simultaneously,” he said at the Global Fintech Fest 2025.
Sankar noted that the “basic use case for CBDC eventually comes in the cross-border space,” emphasising that interoperability between countries will be key to its success.
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