The adoption of cryptocurrency in India will be bolstered by an improved regulatory framework and lowered taxation, according to Vimal Sagar Tiwari, Co-founder of the crypto trading platform CoinSwitch.
Speaking to businesslineon the sidelines of the Startup Summit held recently, Tiwari said a regulatory body akin to the Securities and Exchange Board of India (SEBI) for the stock market and Reserve Bank of India (RBI) for banks will help build trust in cryptocurrencies.
“In the financial system, for any change to happen, it is important for the government to lay down a framework of regulations. There have been some steps in the right direction like inclusion of Virtual Digital Assets under the PMLA and the reporting obligation for crypto firms, but moving forward some reforms in consumer protection and taxation will benefit the industry,” he said.
Further, Tiwari suggested that implementing the standard Security Transaction Tax (STT) on cryptocurrencies will create a level playing field. Currently, Virtual Digital Assets (VDAs), including cryptocurrencies and NFTs, are subject to flat 30 per cent flat tax on gains from transfers.
He foresees traditional financial systems soon getting on board with crypto and recommending crypto to their clients.
Crypto crash
Regarding the crypto crash last Friday, which saw a reported $19 billion wiped out, Tiwari says that corrections like these are normal for any market, and crypto is no exception.
Tiwari mentioned that CoinSwitch observed strong investor activity in the days following the crash, with inflows rising, and spot trading volumes surging more than 50 times on Sunday compared to the previous day. “Investors are clearly buying the dip, viewing corrections as long-term opportunities rather than moments of panic,” he said.
CoinSwitch currently has a user base of over 2.5 crore. The company recently launched its venture capital vertical CoinSwitch Ventures and, according to Tiwari, has already invested in around 25 start-ups in cryptocurrency space.
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Published on October 14, 2025
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