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The cryptocurrency space is rapidly evolving, with technology outpacing regulatory frameworks. Different jurisdictions will adopt varied approaches to manage risks and leverage geopolitical advantages. In this dynamic environment, compliance and security are key concerns for industry players.
In the latest Analytics Insight Podcast, host Priya Dialani speaks with Manhar Garegrat, Country Head, India & Global Partnerships at Liminal Custody, about regulatory challenges and opportunities facing the crypto industry. Having had extensive experience in traditional finance and crypto exchanges, Garegrat shared insights on finding a balance between innovation and safety as digital assets move toward mass adoption.
According to Manhar, Liminal Custody was founded by a team of ex-crypto exchange professionals who intimately understand the challenge of operating at scale. Handling millions of users, thousands of tokens, and billions of dollars in daily transactions demands sophisticated systems for security, compliance, and regulatory oversight.
"Exchanges understand blockchain technology, but when traditional finance, enterprises, or government institutions enter crypto, they lack that exposure," said Manhar. "Liminal Custody bridges that gap and enables faster movement from Web 2 to Web 3 while minimizing operational and regulatory risks."
Drawing from his traditional finance background, the Country Head of Liminal Custody noted the importance of risk management and compliance. While technology aims to simplify transactions, regulatory hurdles often appear like an annoyance, but these safeguards protect users and prevent large-scale fraud. Features such as two-factor authentication, withdrawal limits, and cooldowns may feel restrictive, but in scenarios of hacks or breaches, they significantly cut down on potential losses.
Manhar added that mass adoption requires systems designed to protect the average user who may not understand how blockchain works. "Until we solve for the least common denominator, crypto cannot reach the larger masses," he said. It is not only a technological problem but one of interfaces, security, and trust for adoption.
The Country Head of Liminal Custody shared his personal experience of working with Zeppe and CoinDCX, scaling teams from a few dozen employees to hundreds while navigating India's evolving regulatory landscape. He also emphasized that building crypto businesses requires collaboration with governments and other stakeholders to establish robust frameworks.
Drawing an analogy with the introduction of ride-sharing services, Garegrat emphasized how regulation always tends to lag behind technology. While meters were useful in earlier days, they have now lost that utility to app-based pricing; similarly, crypto regulations will have to keep pace with constant evolution. He said that rules alone are not enough; strong systems, industry expertise, and innovative compliance mechanisms are needed to protect this market while allowing it to grow.
Manhar Garegrat's insights underline the twofold challenge of encouraging crypto innovation on one side and safety with compliance on the other. It is companies such as Liminal Custody that bridge the gap between technology and regulation, enabling secure participation by enterprises and individuals in the digital asset ecosystem. With crypto adoption rising globally, the next chapter of the industry will be defined by regulatory alignment and innovative custody solutions.
