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“Our aim is to ensure that the next wave of Web3 users from any part of India can enter the ecosystem confidently and safely,” Sumit Gupta, Co-Founder of CoinDCX
As India cements its position as one of the world’s fastest-growing crypto markets, Sumit Gupta, Co-Founder of CoinDCX, has emerged as a leading architect of the country’s Web3 future. An IIT Bombay alumnus and a founding member of the Bharat Web3 Association, Sumit spearheaded the creation of India’s first crypto unicorn, guiding CoinDCX to become the nation’s largest crypto exchange—commanding over 80% of India’s trading volume and serving 1.9 crore+ investors. CoinDCX, the first Indian exchange to register with FIU-IND, and has taken proactive steps on TDS automation, Proof of Reserves, and ISO-certified user security—all while making crypto accessible to every Indian, from metros to rural heartlands.
In this exclusive interview, Sumit Gupta shares how CoinDCX is scaling trust through compliance and tech, harnessing educational initiatives for investors for inclusive growth, and building a regulatory-first infrastructure with an eye on driving 30% revenue from the MENA region by 2026.
CoinDCX commands 80% of India’s trading volume. What tech or product decision do you think made the biggest impact on user trust and scale?
At CoinDCX, our north star has always been trust. From day one, we’ve focused on building a product that puts user security, transparency, and reliability first. We’ve built a scalable backend to handle high volatility and ensure uninterrupted access, earning the trust of over 1.9 crore users. Our multi-layered security—using MPC tech and 95% cold wallet storage with biometric protocols—offers the same protection expected by institutions.
Beyond performance, we’ve taken proactive steps on compliance and transparency - we were the first FIU-IND registered entity, and ISO 27001:2022 certified. We were among the first to automate 1% TDS deduction and offer seamless tax reporting through integrated tools. We also publish transparency report every month and regular Proof of Reserves (PoR) reports, which show that every user’s assets are fully backed. It’s our way of being fully transparent—so users always know their funds are safe and accounted for.
These efforts have not only helped us scale but also strengthened our position as India’s most trusted crypto exchange
How is CoinDCX evolving its platform to support the next wave of Indian Web3 users—especially those beyond metro cities?
India is expected to surpass 900 million internet users by 2025. Alongside its #1 ranking in the Global Crypto Adoption Index for both 2023 and 2024, this reflects strong and growing interest in digital assets. However, there’s still significant room for adoption—especially beyond metro cities. At CoinDCX, we’re focused on closing this gap by building a platform that is simple, intuitive, and accessible. Our app is designed with first-time users in mind, offering an experience as seamless as any popular digital app. More importantly, users can start their investment journey with just ₹100—removing one of the biggest barriers to entry.
Beyond the product, we’ve invested heavily in grassroots education. Through initiatives like Namaste Web3, we’ve actively engaged with communities in tier 2 and 3 cities—taking Web3 education beyond metros. We've also established local community chapters that continue to drive awareness around blockchain, crypto, and their real-world potential.
Our aim is to ensure that the next wave of Web3 users from any part of India can enter the ecosystem confidently and safely
What’s your view on how this will shape India’s Web3 startup ecosystem in the next 2–3 years?
We’ve seen progress in India’s crypto regulation through indirect tools like TDS, taxation under Sections 115BBH and 194S, and mandatory AML registration via PMLA. However, in the absence of a unified regulatory framework for Virtual Digital Assets, oversight remains fragmented across multiple bodies like FIU, CERT-In, and the Ministry of Corporate Affairs—making compliance challenging. Encouragingly, steps such as FIU registration mandates for offshore exchanges and India’s inclusion in the OECD’s Crypto Asset Reporting Framework reflect a shift toward global alignment. As an industry, we’re now hopeful that the upcoming Discussion Paper will bring much-needed clarity, streamline compliance, and unlock the next phase of responsible, sustainable growth for Web3 in India.
Globally, tokenization of real-world assets (RWAs) is gaining momentum. Do you see this becoming a serious use case in India, or is it still too early?
The tokenization of real-world assets (RWAs) is not just a global trend—it represents a transformative shift in how we define, access, and exchange value. Boston Consulting Group (BCG) predicted that the market could skyrocket to $16 trillion by 2030.
Tokenization is poised to be a game-changer for financial inclusion in India, especially for those in rural and underserved regions. Picture a farmer from a village in Uttar Pradesh investing in tokenized shares of a solar energy project in Rajasthan. Through fractional ownership, he can access the renewable energy sector without large upfront investments or deep financial expertise. Likewise, a student in Assam could invest in a tokenized stake of a tech startup in Bengaluru, gaining exposure to high-growth sectors previously accessible only to institutional players.
This approach can unlock access to high-value assets across industries. For instance, a fisherman in Kerala could invest in a cold storage facility in Gujarat, creating an additional income stream while indirectly enhancing his own supply chain.
By lowering entry barriers, tokenization enables individuals across geographies and economic backgrounds to build wealth and engage in sectors previously out of reach. While the full vision is still unfolding, India is already moving in the right direction. The launch of a regulated RWA (Real World Asset) tokenization platform at GIFT City marks a significant step forward, signaling India’s growing leadership in this space and its commitment to building a more inclusive, opportunity-rich economy.
As a founding member of the Bharat Web3 Association, what’s your take on the biggest hurdle still holding back mainstream crypto adoption in India?
We believe the biggest challenge today is the lack of a clear regulatory framework—it creates user hesitation and room for bad actors, which hurts industry credibility. On top of that, India’s current tax regime, especially the 30% income tax and 1% TDS, is driving users to offshore, non-compliant platforms—undermining both investor safety and local oversight.
There’s also a major gap in how crypto is understood; many still see it as speculative, overlooking its real-world utility, tokenomics, and long-term value. That’s why we, alongside the Bharat Web3 Association, are focused on education through initiatives like Learn Karo. Crypto Karo., to help users grasp core concepts and engage safely and confidently.
GenAI is transforming fintech—what role do you see AI playing in Web3, especially for user security, trading signals, or compliance automation?
AI—especially GenAI—is rapidly evolving from a support tool into a core strategic driver for Web3 innovation. At CoinDCX, we see AI not just as an efficiency enabler, but as a force multiplier that can redefine how users interact with digital assets—safely, intelligently, and seamlessly. Our platform is leveraging AI across multiple layers. For instance, in user security, AI is helping us detect behavioral anomalies in real-time—spotting and neutralizing potential fraud before it escalates. We're building adaptive systems that learn user behavior patterns and instantly flag suspicious activities, thereby raising the bar for account safety without compromising on user experience.
On the trading side, we are exploring AI-driven signal generation, smart risk profiling, and personalized investment recommendations. These tools empower both first-time and seasoned traders with insights tailored to their risk appetite, goals, and transaction history—enhancing decision-making while reducing cognitive overload.
From a compliance lens, AI plays a pivotal role in automating KYC, AML, and transaction monitoring workflows.
With rising crypto scams and phishing attacks in India, how is the industry—and CoinDCX specifically—strengthening user-side security without adding friction to the trading experience?
Users are entrusting us with their hard-earned assets, and we take that responsibility with utmost importance. That’s why we’ve implemented a comprehensive, multi-layered security strategy designed to provide an impenetrable fortress around their digital holdings. Our platform is built on a defense-in-depth security architecture—each layer reinforces the next, from user login to wallet custody.
CoinDCX ensures top-tier security with MPC-based transaction signing, 95% asset cold storage, biometric protocols, and adherence to FIU-IND, PMLA, and ISO standards, backed by regular audits and Proof of Reserves. Through the Bharat Web3 Association, it also drives industry-wide investor protection via cybersecurity guidelines and ongoing awareness workshops to raise user awareness around phishing, 2FA, and personal key hygiene.
As CoinDCX positions itself to drive over 30% of its revenue from the MENA region by 2026, how do you envision building a unified cross-border crypto infrastructure that not only scales compliance and innovation across India and the GCC, but also sets a global benchmark for regulatory-first Web3 platforms?
Our focus has always been to build a compliant platform and scalable infrastructure that meets global standards. Even while building the CoinDCX app in India, compliance was a cornerstone of our approach. For instance, when FIU-IND mandated registration for Indian exchanges, we were the first to comply—because our systems were already designed with regulatory readiness in mind.
We’ve applied the same principle globally. With BitOasis now fully licensed by the Central Bank of Bahrain and VARA in Dubai, we’ve established a strong regulatory-first foundation across the GCC. The vision is to blend the best of both ecosystems—India’s product innovation and user scale with the GCC’s progressive regulatory clarity and institutional depth. From secure custody and localized payment infrastructure to high-performance platforms tailored for institutional clients, one that not only scales compliance and innovation across markets but also sets a new global benchmark for trust-driven Web3 growth.
