“Crypto still has image problem, but perception shifting”: CoinDCX CEO Sumit Gupta

On April 7, CoinDCX, one of the biggest cryptocurrency exchanges of India, completed seven years of its inception.What was once an ambitious idea floated in a humble city apartment between budding tech entrepreneurs snowballed into a major exchange catering to over 15 million crypto users.In the past seven years, CoinDCX team has witnessed the story of India’s crypto adoption, evolving from rapid, exponential growth to facing the rocky terrain of regulations and blanket bans to finally a new dawn of hope as the country ranked globally number 1 in crypto adoption.In an exclusive conversation with The Crypto Times reporter Dishita Malvania, CoinDCX CEO Sumit Gupta shares his journey, challenges he faced, and future prospects for crypto adoption in India.Question: Congratulations on 7 years of CoinDCX! When you started CoinDCX, did you ever imagine India’s crypto ecosystem would evolve this far?Sumit Gupta: When we started CoinDCX in 2018, operating out of a small apartment with just five team members, we were driven by a vision to make crypto accessible to all. While we believed in the transformative potential of blockchain, the scale and speed at which India’s crypto ecosystem has evolved have been truly remarkable.Back then, the crypto industry in India was nascent, and adoption was slow. However, we anticipated that a tipping point would come when awareness and innovation would accelerate adoption. Today, seeing Bitcoin cross significant milestones like INR 1 crore and witnessing institutional support from global giants validates that belief. The Indian market has matured significantly, with over 1.6 crore users trusting platforms like CoinDCX for secure and innovative solutions.Question: How has the journey been? Was it challenging? Sumit Gupta: The journey has been both challenging and rewarding. From becoming India’s first crypto unicorn to introducing pioneering features like staking, automated KYC, and educational initiatives like DCX Learn, CoinDCX has played a pivotal role in shaping the ecosystem. We also navigated regulatory uncertainties and market volatility to ensure that crypto became more accessible and secure for Indians.Question: How do you view the current state of crypto adoption in India compared to earlier years?Sumit Gupta: India now leads the world in grassroots crypto adoption, ranking first in the 2023 and 2024 Global Crypto Adoption Index by Chainalysis. This reflects widespread acceptance among everyday users, even amidst regulatory challenges like high taxation and strict trading rule.The demographic shift is also notable—75% of Indian crypto investors are under 35, signaling strong interest from younger generations. While challenges like regulatory uncertainty persist, India’s leadership in adoption and innovation solidifies its position as a key player in the global crypto landscape.Question: Do you think crypto still has an image problem in regulatory or media spaces, or is the perception changing?Sumit Gupta: Crypto still faces an image problem in regulatory and media spaces, but the perception is gradually shifting. In 2025, governments like the U.S. and the EU are moving toward clearer, more structured regulations that aim to balance innovation with consumer protection and financial stability. The U.S. has signaled a more crypto-friendly stance under the current administration, with efforts to reduce regulatory uncertainty and foster industry growth.Public sentiment is improving, with crypto ownership in the U.S. nearly doubling since 2021 and consumer confidence rebounding after strong market performance. However, skepticism remains: 40% of crypto owners still lack confidence in the technology’s safety, and concerns about security, compliance, and criminal misuse persist in both regulatory and media narratives.Question: After the WazirX hack, many users became cautious. How has CoinDCX worked to build trust and ensure transparency? In case of a major security breach, how prepared is CoinDCX to respond? What protocols or contingencies are in place?Sumit Gupta: In direct response to WazirX hack, CoinDCX established a Crypto Investors Protection Fund (CIPF) initially funded with ₹50 crore (approximately $6 million), designed to compensate users in the event of security breaches or unforeseen losses. This fund is continuously growing, supported by a commitment to allocate 2% of CoinDCX’s brokerage income, and is governed by a transparent framework with regular audits and reviews to maintain its viability.To further reinforce trust, CoinDCX publishes quarterly transparency reports, including proof of reserves verified by third-party auditors, demonstrating that user funds exceed customer liabilities. As of March 2025, CoinDCX held over 507 million USDT across multiple reputable exchanges and wallets, underscoring their strong reserve position and commitment to safeguarding assets.Adhering to global best practices, CoinDCX complies with stringent KYC and AML regulations to maintain a robust governance framework for transparent decision-making and provides continuous training to its staff on emerging threats and compliance requirements. The company’s dedication to security and privacy is further validated by achieving ISO/IEC 27001:2022 and Privacy ISO/IEC 27701:2019 certifications, making it one of the few Indian crypto exchanges to attain such standards.Also Read: Rise and Fall of WazirX: Mapping India’s Biggest Crypto HackQuestion: Did the WazirX incident have any impact on user activity or sentiment on CoinDCX? Any trends you can share?Sumit Gupta: Yes, the WazirX incident had a notable impact on user sentiment across the Indian crypto ecosystem, leading to a visible shift of users toward more trusted platforms like CoinDCX. Following the incident, CoinDCX witnessed a surge in new user registrations along with higher wallet deposits and KYC completions, indicating active migration. Many users cited CoinDCX’s regulatory-first approach, robust security, and intuitive interface as key reasons for the switch. This trend reflected a broader move towards platforms offering greater transparency and compliance.Also Read: Sumit Gupta Shares CoinDCX March 2025 Transparency ReportQuestion: With global exchanges reentering India via FIU registration, how is CoinDCX positioning itself to stay ahead? Do you anticipate any impact on your market share?Sumit Gupta: Our strategy to maintain a competitive edge amid global exchanges re-entering the Indian market through FIU registration focuses on several key areas. We emphasize continuous innovation by expanding our product offerings, including advanced trading options like margin and futures trading, staking, and lending services tailored for Indian users. We also prioritize enhancing user experience with AI-powered solutions and dedicated VIP support to set a gold standard in customer service.Question: With global players entering India, is CoinDCX considering international expansion?Sumit Gupta: CoinDCX is actively exploring and executing global expansion opportunities. With the arrival of international competitors in India, we have taken significant steps to establish a global footprint, most notably through the acquisition of BitOasis, a leading crypto platform in the Middle East and North Africa (MENA) region. This strategic move not only marks our first major international expansion but also positions us to strengthen and grow our presence in multiple regulated markets globally.Question: How are global factors—like US tariffs or geopolitical tensions—affecting crypto sentiment in India?Sumit Gupta: International developments such as US-imposed tariffs and rising geopolitical tensions significantly influence investor sentiment toward crypto in India by creating regulatory ripple effects and market uncertainty. Indian investors closely watch global regulatory decisions, especially from the US and Europe, as these shape the global crypto market dynamics and impact liquidity and trading volumes domestically. For instance, stringent regulations or tariffs in the US can lead Indian investors to become cautious, affecting trading activity and investment flows. Similarly, global shifts toward clearer regulation and institutional adoption can boost confidence in India’s crypto market.Question: What’s your take on the current market cycle—are we still bullish or heading into bearish territory?Sumit Gupta: The current phase of the crypto market is characterized by strong bullish momentum, particularly driven by Bitcoin reaching new highs above $93,000 and becoming the fifth most valued asset. Even Ethereum is showing consistent growth and increased trading volumes. While macroeconomic pressures and geopolitical tensions have introduced bouts of volatility, the overall sentiment remains positive, with institutional interest and adoption at an all-time high and fresh capital flowing into both established and emerging projects. However, it’s important to note that the market is not without risks—volatility persists, and external shocks can trigger short-term corrections. Still, the fundamentals and long-term outlook remain robust, suggesting we are in a bullish phase, albeit with periods of heightened caution and rapid shifts.