India’s Crypto Future Hinges on Clarity, Not Just Taxes — CoinSwitch Co-founder Speaks
India’s crypto industry is at a crucial juncture, with significant developments on the horizon. In an exclusive interview with Coinpedia, Ashish Singhal, Co-founder of CoinSwitch, sheds light on the current state of affairs, touching upon key topics such as Central Bank Digital Currencies (CBDCs), Unified Payments Interface (UPI) dominance, Budget 2026 implications, taxation, and the growing trend of startups exploring offshore opportunities.
Singhal emphasizes that while UPI has revolutionized the payment landscape in India, CBDCs represent a new frontier. CBDCs, issued by the central bank, offer a digital alternative to physical cash, enabling targeted use cases such as government subsidies and instant fund transfers. He likens UPI to the road and CBDCs to a new vehicle running on it, enhancing the efficiency and effectiveness of financial transactions.
The recent India Budget 2026 maintained the status quo on crypto taxes, signaling a commitment to stringent regulations. While this approach aims to promote responsible investing and compliance, it has also led some crypto activities to move offshore due to high taxes and TDS requirements. Singhal suggests that a more balanced tax structure aligned with global standards could foster growth and innovation within India’s crypto ecosystem.
Regulatory ambiguity remains a major concern for startups in the crypto space. Many Web3 founders are gravitating towards jurisdictions like Dubai, Singapore, and Hong Kong, where regulatory clarity facilitates access to essential resources such as banking services and capital. India’s vast talent pool and market potential provide a competitive advantage, but without clear and proportionate regulations, the country risks losing its edge in the global crypto landscape.
Regarding Bitcoin ETFs, Singhal underscores the need for a solid regulatory foundation before introducing such products in India. While institutional demand for crypto assets is growing, regulatory uncertainties must be addressed to ensure investor protection and market stability. Global developments, including the approval of ETFs in the US, highlight the importance of aligning India’s regulatory framework with international standards to attract investment and drive innovation.
Singhal concludes by acknowledging the complexities of regulating the crypto sector, which intersects with various aspects of financial governance. India’s cautious approach prioritizes risk management through taxation and compliance measures while observing global trends in crypto regulation. As adoption outpaces regulatory frameworks, bridging the gap between innovation and oversight will be crucial for shaping India’s crypto future.
In a rapidly evolving industry, staying informed and adaptable is key to navigating the challenges and opportunities that lie ahead. By fostering a conducive regulatory environment, India can leverage its strengths to emerge as a prominent player in the global crypto economy.
