'Regulatory clarity key to India's crypto growth over the next 18 months'

Ashish Singhal, Co-founder of CoinSwitch, believes that India needs a balanced approach to the crypto markets-emphasizing smart regulation, robust security standards, and ongoing investor education

Amid ongoing volatility in the cryptocurrency markets, Ashish Singhal, Co-founder of CoinSwitch, advised Indian investors to treat digital assets as a long-term allocation rather than a short-term trade. In an email interview with Kumar Gaurav, Singhal emphasised that trust must precede hype if crypto is to go mainstream in India. Edited Excerpts:

Crypto markets have been volatile lately. How should Indian investors approach digital assets in the current environment of global macro uncertainty and shifting risk appetite?

Crypto, like any emerging asset class, goes through periods of volatility and the current global uncertainty has only added to that. For Indian investors, the right approach is to treat digital assets as a long-term allocation rather than a short-term trade. Diversification, disciplined investing, and awareness of risks are key. It is also important to do your own research and invest only what you can afford to hold through market cycles. For traders on the other hand, volatility is an opportunity.

 

 

Despite short-term swings, the underlying technology and adoption trends remain strong, India continues to lead globally in crypto adoption. That is why I believe investors should look beyond daily price movements and focus on the long-term potential of this space.

How do you see India’s evolving regulatory stance impacting retail and institutional participation in crypto over the next year?

India’s regulatory stance on crypto is slowly moving from uncertainty to clarity, and that shift is encouraging. For everyday investors, clearer rules and stronger safeguards can help rebuild confidence, even if high taxes still limit short-term speculation. On the institutional side, optimism is rising with global players exploring a return and Indian banks piloting blockchain solutions.

 

What we need now is smart regulation, one that balances investor protection, financial stability, and innovation. The ongoing consultations, draft papers, and policy discussions are important first steps, signalling India’s intent to lead in this space.

With global interest in spot Bitcoin and Ethereum ETFs rising, do you foresee similar investment products being launched or approved in India anytime soon?

Globally, the rise of spot Bitcoin, and Ethereum ETFs shows that crypto is steadily moving into the mainstream of financial products. In India, however, such offerings may still take time. Regulatory clarity is evolving, but current rules around taxation and investor protection don’t yet allow for ETFlike structures.

 

That said, the growing demand from both retail and institutional investors, along with India’s leadership in crypto adoption, suggests that over time we could see innovative, regulated investment products tailored for the Indian market. For now, investors will need to access crypto directly through compliant exchanges.

What are the key security and compliance measures CoinSwitch has adopted in response to increasing regulatory scrutiny and investor concerns? Typically, how much does a crypto exchange spend on cybersecurity as a % of revenue and PAT? Do you see these costs rising and cyber frauds gathering steam?

At CoinSwitch, security and compliance have always been core priorities. We follow a multi-layered security framework that includes end-to-end encryption, regular third-party audits, cold wallet storage for the majority of assets, and strict KYC/AML checks aligned with regulatory requirements. In addition, we have invested heavily in advanced fraud detection systems and round-the-clock monitoring to safeguard our users.

 

We will end up spending anywhere between 8-9 per cent of our revenue on cybersecurity, though the actual figure can vary depending on scale and complexity. We see this as an investment rather than a cost. As the ecosystem matures and regulatory oversight deepens, we do expect cybersecurity spending to rise but so will the sophistication of our defences.

What are the biggest risks and opportunities you see for the Indian crypto ecosystem over the next 12–18 months?

India’s crypto industry is at a defining point. The next 12–18 months will be shaped by how quickly we move from regulatory uncertainty to clear frameworks on taxation, licensing, and investor protection.

 

Today, ambiguity and high compliance costs hold back both retail and institutional participation. But the opportunity is massive. With a young, digital-first population, especially in Tier 2 and Tier 3 cities, adoption can accelerate rapidly once transparency and safeguards are in place.

 

What India needs is a balanced approach, smart regulation, strong security standards, and continuous investor education.  

Many Indian users still perceive crypto as speculative or unsafe. What steps is CoinSwitch taking to build trust and awareness among new or hesitant investors?

 

At CoinSwitch, our focus is on education, transparency, and safety. We run awareness initiatives to explain crypto in simple, relatable terms and highlight its long-term potential beyond just price movements. We encourage responsible investing, starting small, diversifying, and investing only what you can hold long-term.

 

As I often say, trust must come before hype if crypto is to go mainstream in India.