Following the significant hack of WazirX by the notorious Lazarus Group, which resulted in the loss of $235 million, Indian cryptocurrency sentiments have plummeted. Users are now shifting towards more reputable platforms.
In a recent interview published on May 5, 2025, Sumit Gupta, CEO of CoinDCX, expressed his views on the evolving Indian crypto environment. He indicated that the market has matured impressively, now with over 1.6 crore (16 million) Indians actively utilizing platforms like CoinDCX for daily transactions. Gupta noted that platforms complying with stringent Know Your Customer (KYC) and anti-money laundering (AML) protocols have emerged as preferred options for users. The surge in registrations, wallet deposits, and KYC completions at CoinDCX reflects this trend.
Despite the inherent image issues surrounding cryptocurrencies, Gupta cited positive developments undertaken to establish trust. Countries such as the United States and those in Europe are moving towards structured crypto regulations, thereby alleviating uncertainty and promoting growth.
An interesting point made during an ongoing legal case, was that the Supreme Court of India remarked that trading in Bitcoin might just be a modern form of ‘Hawala,’ a traditional informal money transfer system. The court has expressed concern over the government’s failure to establish clear regulations, requesting policy clarification based on a similar inquiry two years prior.
While addressing the challenges faced, Gupta pointed out that despite the high level of enthusiasm among younger investors, geopolitical tensions negatively influence market sentiments, particularly with recent U.S. tariffs impacting global trading behavior.
Key Highlights
- Over 16 million Indians engage in crypto transactions.
- India ranks first in grassroots crypto adoption globally.
- The WazirX hack prompted investors to seek safer platforms.
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