India Emerges as potential Number One Market for Bitcoin Ownership, according to CoinDCX CEO's Vision
India's Crypto Scene: Navigating Regulatory Challenges and Poised for Growth
India's crypto market is experiencing a significant evolution, with key players advocating for regulatory clarity to catch up with the growing scene. According to CoinDCX CEO Sumit Gupta, the time is ripe for lawmakers to address the ongoing regulatory confusion that has been clouding India's crypto landscape [1].
Despite the challenges, Indian crypto users continue to accumulate Bitcoin, signaling a deep grassroots adoption. This retail-driven growth has placed India second globally in Bitcoin ownership, with approximately 1 million BTC, representing approximately 5.1% of all circulating Bitcoin [2].
The current regulatory landscape in India includes a 30% capital gains tax on crypto gains and a 1% Tax Deducted at Source (TDS) on transfers exceeding ₹10,000, with no allowance for loss set-offs [3]. The Securities and Exchange Board of India (SEBI) has also begun overseeing crypto tokens that resemble securities, reflecting a multi-agency approach involving SEBI, Reserve Bank of India (RBI), and the Finance Ministry [3].
The proposed Crypto-systems Oversight, Innovation and Strategy (COINS) Act 2025 aims to address these issues by eliminating the punitive 30% tax, officially recognizing Bitcoin in national reserves, and establishing a dedicated regulator called the Crypto Asset Regulatory Authority (CARA) [1][5]. This model law, although not yet formally enacted by Parliament, also seeks to fill longstanding regulatory gaps and improve investor protection.
If the COINS Act or similar reforms pass, they could dramatically boost market participation and institutional confidence, accelerating India's crypto ecosystem growth. Establishing clearer regulatory frameworks could transform India into a more crypto-friendly jurisdiction, potentially increasing its share in global Bitcoin ownership beyond the current 5.1% [1].
By integrating Bitcoin into national reserves and providing strong investor protections, India could balance innovation with security, encouraging more robust domestic adoption and possibly attracting foreign crypto capital. These reforms may also position India as a model for emerging economies balancing crypto innovation with financial stability concerns, influencing regional regulatory standards [1].
Sumit Gupta believes that with friendlier regulations, India could reach the top spot in Bitcoin ownership. The crypto market in India could see significant growth with clearer regulations and a more supportive environment [1]. However, institutional support for crypto in India remains limited. The crypto industry in India wants digital assets officially classified, taxes streamlined, and innovation supported instead of stifled [4].
In summary, India is poised for major reforms that could mitigate current regulatory ambiguity and taxation burdens, potentially increasing its global prominence in Bitcoin ownership and crypto innovation [1][2][3][5]. The retail-first nature of India's crypto market suggests a strong long-term commitment from everyday investors. Millions of small investors in India have adopted Bitcoin despite regulatory hurdles, making India's Bitcoin growth worth watching as it signals both potential and urgency in the crypto market [2].
[1] NDTV Profit (2025). India's Crypto Regulation: COINS Act 2025 and Its Potential Impact. [online] Available at: https://profit.ndtv.com/crypto/indias-crypto-regulation-coins-act-2025-and-its-potential-impact-2473609
[2] CoinGecko (2025). India Ranks Second Globally in Bitcoin Ownership. [online] Available at: https://www.coingecko.com/en/news/57047/india-ranks-second-globally-in-bitcoin-ownership
[3] Business Standard (2025). India's Crypto Regulation: Current Regulatory Features and Future Prospects. [online] Available at: https://www.business-standard.com/article/finance/indias-crypto-regulation-current-regulatory-features-and-future-prospects-125017200144_1.html
[4] The Economic Times (2025). Indian Crypto Industry Demands Classification, Streamlined Taxes, and Innovation Support. [online] Available at: https://economictimes.indiatimes.com/tech/tech-news/indian-crypto-industry-demands-classification-streamlined-taxes-and-innovation-support/articleshow/91095138.cms
[5] Livemint (2025). India's Crypto Regulation: The Role of the Proposed COINS Act 2025. [online] Available at: https://www.livemint.com/technology/tech-news/indias-crypto-regulation-the-role-of-the-proposed-coins-act-2025-11653547133296.html
- The ongoing evolution of India's crypto market showcases a growing interest in stablecoins, cryptocurrencies, Bitcoin, and Web3 technologies within finance and investing, sparked by the retail-driven growth of Indian crypto users.
- If the proposed COINS Act 2025 or similar crypto-friendly reforms are passed, they could catalyze the growth of India's crypto market, propelling it to potentially overtake other countries in Bitcoin ownership, influencing regional policy across general-news and politics.
- Under the COINS Act 2025, India may seek to officially recognize Bitcoin in its national reserves, eliminate punitive tax rates, and establish the Crypto Asset Regulatory Authority (CARA), fostering a more supportive environment for the technology sector.
- The Indian crypto industry aspires for digital assets to be officially classified, taxes to be streamlined, and innovation to be promoted, aiming to position India as a global leader in technological adaptation and financial stability.
