Cryptocurrency is not illegal, but it isn’t legal, either.

The fate of cryptocurrencies in India stays cryptic in a largely unregulated environment, despite repeated scams taking a major toll on investor confidence. While the government’s plan to float its very own digital currency adds some faith in the digital asset, raging headwinds of malicious trade and unfavourable macro fundamentals have deepened the uncertainty in the market. Only a few homegrown companies have stood firm even in such times of turbulence.

“Stability is what we need at this hour,” believes Ashish Singhal, who cofounded CoinSwitch Kuber, which is one of the only two cryptocurrency unicorns in India.

Singhal, who is also the chief executive of the crypto exchange and aggregator, hopes that the government will soon bring in regulations and then, it’s all about compliance. “It’s a game of patience. We’re dealing in a new-age product that is yet to be understood by a wider mass. The situation is improving and I’m sure it’s going to get momentum very soon.”

While sticking to its transparent business model which, according to him, gave CoinSwitch Kuber the strength to face the volatile environment, the company has expanded into other fintech verticals like wealth management.

“If we believe in stability, then we must make our core business operations more stable before we jump on the fintech bandwagon rushing for public listing,” says Singhal.

The Bengaluru-based company has been trying to rebuild investor confidence and is also leading awareness in cryptocurrencies working under the purview of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India RBI (SEBI).

Singhal was one of the cryptocurrency leaders in India to speak for the victims of the $230 Mn hack on WazirX in 2024. In a freewheeling chat with Inc42 as part of the Griffin Dialogues series, he shares how he would have handled the situation differently.

“If a company isn’t able to cover the full extent of the losses immediately, it should still take partial responsibility. Like managing part of the repayments from the company’s treasury, and the rest perhaps through shares in the company or future revenue streams,” he says.

Edited excerpts

Inc42: Regulations around crypto assets have stabilised to some extent. What kind of impact do you see on the crypto industry in India?

Ashish Singhal: The re-election of Donald Trump has definitely made things better for the crypto community. His supportive stance on crypto assets could inspire other countries to adopt more favourable regulations as well. In fact, we’re already seeing this happen.

Earlier this week, Department of Economic Affairs (DEA) secretary Ajay Seth said the government is revisiting its discussion paper on crypto based on recent developments around the world. The government’s view is also changing gradually. A few years back, the conversation was majorly about whether to impose a complete ban on crypto. But today, the focus has shifted towards creating a proper policy framework.

We have also seen some concrete steps in this direction such as a tax system for crypto transactions, which requires exchanges to register with the Financial Intelligence Unit (FIU), and even drafting of a detailed discussion paper on digital assets.

While the government is still taking a cautious and careful approach, these developments show that the regulatory environment is maturing. This is a positive sign for the long-term, sustainable growth of the virtual digital assets (VDA) industry in India.

Inc42: We’ve seen a lull in VC funding for the crypto industry. Do you see any likely revival in the VC sentiment for the crypto industry in India?

Ashish Singhal: The Web3 sector in India is mainly hamstrung by the lack of regulation. We........

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