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Indian Virtual Digital Assets Industry Resembles the Growth of the IT Industry, Says CoinDCX CEO

Highlighting the Indian web industry's potential in contributing $1 trillion by itself to India's $5 trillion economy dream, Gupta speaks of the importance of positive regulatory measures

Shashank Bhardwaj
Published: Aug 10, 2023 05:43:18 PM IST
Updated: Aug 11, 2023 09:15:36 AM IST

Indian Virtual Digital Assets Industry Resembles the Growth of the IT Industry, Says CoinDCX CEOSumit Gupta, the CEO of CoinDCX

In modern finance, the emergence of Virtual Digital Assets (VDAs) has ignited a transformation reminiscent of India's Information Technology (IT) sector growth. India's strong foothold in global crypto adoption is evident as the country prominently ranks among the top five. Additionally, the sixth-place position in DeFi adoption indicates a growing interest and untapped possibilities within the sector of VDAs. 

Sumit Gupta, the CEO of CoinDCX, unveiled the parallel between VDAs and IT sector growth in India by shedding light on the remarkable revolution of the VDA industry.

In this ever-changing financial landscape, Gupta emphasises the importance of establishing a comprehensive regulatory framework to nurture lasting growth and stability in the VDA sector. 

Transitioning to the regulatory domain, Gupta navigates the challenges current policies pose. He said, “The crypto industry in India faces both opportunities and challenges under the current policies. One of the significant challenges is the introduction of a 1% Tax Deducted at Source (TDS) in 2022. This policy has led to higher execution prices on Indian exchanges compared to other avenues for Indian crypto users.”

The Telangana Blockchain District has launched the India Blockchain Accelerator to empower deep-tech blockchain startups. On the other hand, Maharashtra has issued 1 lakh diplomas on a blockchain platform, enabling students to instantly verify their credentials, a task that used to take a month. Citing Telangana and Maharashtra as examples, Gupta emphasised, “states like Telangana and Maharashtra have already demonstrated the potential of blockchain in various sectors. Encouraging blockchain education and supporting Web3 startups can further boost the growth of the crypto industry.”

Drawing upon global examples, including Hong Kong, Japan, and the UK, Gupta accentuates the art of harmonising innovation with investor protection. He comments that “by granting regulatory certainty to the virtual digital assets (VDA) and web3 ecosystem, these nations have set positive examples for others to follow.”

Gupta further underscores, “...to navigate the regulatory changes, stakeholders must work collaboratively with regulators, industry peers, and other market participants. Creating a conducive and regulated environment is essential to foster responsible growth and innovation in the crypto industry. By engaging in constructive dialogues and advocating for transparent and comprehensive regulations, stakeholders can prepare themselves to adapt to the evolving regulatory landscape.”

The VDA industry is poised to reshape the nation's financial landscape, drawing parallels to the IT sector's growth. With the boundless potential of a thriving digital financial future, while asserting the importance of regulatory adaptability to embrace the fluid financial landscape, India can fuel innovation and progress.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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