BFSI Summit: Crypto leaders urge India to act fast on regulations

As the global dominance of dollar-backed stablecoins rises, crypto leaders say India should act swiftly to protect its monetary sovereignty by introducing an INR-backed stablecoin

Government must bring clear regulations for the digital asset sector as policy delays threaten to push innovation and talent out of India, top crypto industry leaders said at Business Standard BFSI Insight Summit 2025 in Mumbai on Thursday. In a panel discussion titled ‘India’s Crypto Crossroads: Time for a Policy Rethink?’, industry leaders argued that India also needs to push for an INR-backed stablecoin.

 

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 agreed that India can no longer afford regulatory uncertainty in the sector. Chenoy cited India’s potential $1.1 trillion opportunity by 2032 in the virtual digital asset space and urged policymakers to move quickly. 

 

“Eighteen of the G20 nations already have some sort of crypto regulation. India took the lead in the G20 to push for a global framework; now it’s time we act on it domestically,” he said.

‘Future of finance is digital’

Padmanabhan said the financial sector is inevitably moving toward digitisation and tokenisation, making regulation essential. “The future of finance is digital. The future of finance is tokenisation,” he said. “Regulators may have missed the bus on crypto, but we cannot afford to ignore it any longer. Around 70 per cent of IMF member countries are already working on some kind of stablecoin regulation because they recognise its potential.”

 

He added that while crypto raises complex issues for India, especially around foreign exchange and capital flows, structured frameworks are necessary to enable safe cross-border transactions.  ALSO READ | BS BFSI Summit 2025 LIVE updates

Driving out talent

“It’s high time that we look at regulations. The best time to regulate the sector was yesterday; the next best is today,” said Gupta, who added that Indian crypto entrepreneurs are leaving the country due to unclear rules. “Running an exchange in India has been a nightmare because of uncertainty. Ninety per cent 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,” he said.

 

Additionally, Chenoy emphasised that delaying crypto regulation is 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 per cent of the biggest Indian crypto product creators have already relocated abroad.”

Need for a separate regulator

Seker said the outcome mattered more than the structure: “There are two models — Dubai created a separate regulator, while others integrated it into existing financial systems. As long as there’s a constitutional mandate, a new body isn’t necessary.”

 

Padmanabhan agreed, saying “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 the global dominance of dollar-backed stablecoins rises, crypto leaders said India should act swiftly to protect its monetary sovereignty by introducing an INR-backed stablecoin.

 

Chenoy said such a move could cut remittance costs and boost inflows. “Using stablecoins will put more money in the hands of Indians. This could be our new ‘UPI moment’ in international remittances,” he said.

 

Warning against dollar-backed dominance, Padmanabhan said, “If 97 per cent of stablecoins are dollar-backed, the US dollar will decide our monetary policy. You cannot just allow that.”

 

Highlighting that global stablecoin circulation could reach $2 trillion by 2030, Gupta said, “If we don’t act now, others will internationalise their currencies while India lags. We need to internationalise the rupee,” he said.

 

Seker added, “As digital dollars become programmable and interoperable, their global influence will grow. India must make the rupee digitally available to stay competitive.”