From Sceptics to Believers: Propelling Cryptocurrency Acceptance in India

India is on the brink of a technological revolution that could transform its financial ecosystem. With a population of over 820 million active internet users1, one of the world’s largest pools of digital talent, and over 100 million crypto owners as of 20243, India is uniquely positioned to lead the way in the global cryptocurrency market. Yet, the country’s relationship with cryptocurrency remains an interesting paradox. Despite a massive surge in adoption, widespread uncertainty about its future remains, blending excitement with caution. On one hand, there are users who are curious but lack clarity, and on the other hand, there is a system wary of the volatile nature of crypto and its potential risks. So, what will it take for India to move from a landscape that’s dominated by suspicion to one where both policymakers and the masses see value, legitimacy, and opportunity in this fast-growing asset class?

Global crypto landscape and why India needs to act now

Sentiment towards crypto is experiencing a significant shift, with governments worldwide warming up to the concept and regulating the asset class. While countries like Brazil and Japan are embracing crypto as a legitimate part of their financial system, others, including the United States and European Union, are actively working towards fostering comprehensive regulation to facilitate growth while ensuring stability and security. But in India, the narrative is still largely one of uncertainty.

According to Chainalysis Global Adoption Index4, India led the global adoption of cryptocurrencies for the second straight year, reflecting the country’s innate hunger for progress and innovation. However, even with such promising growth, the regulatory landscape remains hesitant. At present, India’s crypto space is operating in an environment where policy direction remains fluid, in the absence of a defined regulatory framework. While the technological and entrepreneurial spirit remains strong, aligning it with a structured regulatory approach will be crucial for broader acceptance.

This transition won’t be easy, but India cannot afford to remain stagnant. The global crypto ecosystem is moving towards embracing digital currencies in ways that offer financial inclusion, international transactions, and economic modernisation. It is time for India to join this global conversation, rethink its regulatory stance, address the concerns causing scepticism, and emerge as a global leader in this space, much like the way India made its mark with the discovery of UPI.

Path ahead to bring about a paradigm shift

To end this tug-of-war, bring a shift in perspective for a country home to over 1.4 billion people, and truly catalyse nationwide acceptance, certain concreted efforts are required:

• Robust regulatory framework: The policymakers and regulators must take a more proactive role in shaping the future of cryptocurrencies by drafting guidelines that ensure investor protection while fostering innovation. With a clear roadmap that outlines the legal status of cryptocurrencies, appropriate tax regulations can be introduced, and a framework can be developed that ensures safety, security, and transparency. This will provide clarity on how the digital asset fits within the broader financial system of the country and pave the way for wider acceptance.
  

• Crypto literacy: Lack of understanding stands as a significant roadblock today, with cryptocurrency and blockchain being often misunderstood as tools of speculation. Educating Indian investors about what cryptocurrency is, how it works, and why it could be a useful financial tool is the key to bridging this gap. While efforts to promote crypto literacy are already gaining momentum across the nation, continued education is a must as the ecosystem matures. The onus lies on both the industry leaders and the government to demystify the asset class and raise awareness on how these technologies, when used responsibly, can unlock efficiencies in the financial system and enable financial inclusion.
  

• Real-world use case: India is one of the largest recipients of remittances globally. In 2024 alone, India received $129.4 billion in remittances, crossing the $100 billion mark for the third consecutive year5. Embracing a crypto-based remittance system can drive a meaningful change for the country, as it will facilitate near-instantaneous and significantly cheaper international payments. This will not only enhance ease for transactors but also encourage crypto adoption and contribute to global financial inclusion.
  

• Compliance-first approach: Playing by the rules is the key to scaling and gaining legitimacy in India. Cryptocurrency companies must show accountability and responsibility by implementing a compliance-first approach and demonstrating strict adherence to robust security and transparency. This is vital not just to build trust with regulators, but also for the public who may be wary of potential fraud, manipulations, and uncertainties.
  

• Institutional engagement and collaboration: In the past, crypto companies have operated largely in isolation. But if India truly wants to bring about a shift in perception, we need institutional buy-ins. Banks, financial firms, and fintech startups should start collaborating with crypto companies. The partnership between traditional financial services and blockchain platforms will build credibility and show that crypto is not just a niche market but a viable and mainstream asset class for investors.
  

As we look ahead, India’s position in the crypto landscape is far from decided. Whether the nation takes the path toward scepticism or embraces the global shift towards crypto adoption depends largely on how India shapes its regulatory framework, prioritises education, and creates a secure and compliant ecosystem. By doing so, India could potentially become a global leader in the crypto space while creating a system where trust, transparency, and innovation coalesce into a thriving digital economy. To make this shift happen, policymakers, investors, and crypto companies must work together to turn scepticism into belief, and ultimately, trust. The time is now. Let’s shift the conversation and make India a global leader in digital finance, like it was always meant to be.

(The author, Himanshu Maradiya, is the Founder and Chairman of CIFDAQ)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)