CoinDCX CEO Sumit Gupta Outlines Reset Chance for Indian Crypto Market

TheNewsCryptoPublished on 2026-01-09Last updated on 2026-01-09

Abstract

CoinDCX CEO Sumit Gupta proposes three key policy changes to reset India's crypto market: reducing the TDS rate from 1% to 0.01% to lower compliance costs and prevent offshore migration; aligning the 30% capital gains tax with income slabs for progressive taxation; and allowing investors to offset crypto losses against other income. These suggestions will be submitted to the Finance Ministry. Despite tax challenges, India's crypto market is projected to grow from $2.6 billion in 2024 to $15 billion by 2035, with over 100 million users. Global volatility, influenced by US economic events, continues to affect the market.

Sumit Gupta, the CEO of CoinDCX, has outlined three key changes that could possibly help India reset its crypto policy. These range from taxation to offsetting, with the fundamental objective of fueling the adoption of tokens and expansion of the crypto market. Meanwhile, the crypto segment worldwide remains volatile due to recent global factors.

Suggestions by Sumit Gupta

CoinDCX CEO Sumit Gupta has suggested three key changes to reset India’s policy towards its crypto market. First, he has sought a reduction in Tax Deduction at Source (TDS) to 0.01% from the current rate of 1%. Sumit has added that this could lower compliance costs to bring more users to regulated platforms. Meaning, it would eliminate offshore migration and keep transactions visible under the government’s purview.

Second, Sumit Gupta has suggested aligning the 30% capital gain tax with income slabs. He has added that progressive taxation could encourage legitimate wealth creation. An example quoted by him simplifies this to the current situation, wherein a person earning ₹50k per month pays the same rate as someone in the highest tax bracket.

Third, CoinDCX CEO has pointed out to enable loss offsetting for crypto investors. This means that investors should be able to offset their investment losses against other income, which, he added, is a standard principle globally.

Sumit has confirmed that everyone from the industry would submit these suggestions to the Finance Ministry as a part of pre-budget consultations. These pointers come a day after he emphasized the level of competition in the Indian crypto market, where 49 crypto exchanges reported FIU registration.

Crypto Market Expansion and Adoption in India

The crypto market in India is reportedly estimated to reach $15 billion by 2035. It was last valued at $2.6 billion in 2024. The projection is based on the enthusiastic adoption across the country. India reported a user base of around 100 million traders and investors this year, that is in 2025.

Significant activities have been reported in metro cities, including, but not limited to, Mumbai, Delhi, and Bengaluru. Notably, crypto adoption is rising despite risks being flagged along with tax enforcement challenges.

Volatility in Crypto Market

The global crypto market remains volatile, especially in line with recent incidents. The US employment data and the court’s verdict on Trump’s tariff are likely to be announced on Friday morning. The US President expressed his support for a bipartisan sanctions bill, which, if passed, could increase tariffs to 500%.

While three suggestions by ConDCX CEO Sumit Gupta underline a broader scope for the crypto market to grow in India, there are global factors at play that could continue to possibly influence the industry. Crypto traders and investors are recommended to do research and risk assessment before fund allocation.

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TagsCoinDCXCrypto MarketIndia

Related Questions

QWhat are the three key policy changes suggested by CoinDCX CEO Sumit Gupta for India's crypto market?

ASumit Gupta suggested three key changes: 1) Reducing Tax Deduction at Source (TDS) from 1% to 0.01%, 2) Aligning the 30% capital gain tax with income slabs for progressive taxation, and 3) Enabling loss offsetting for crypto investors against other income.

QWhat is the projected value of India's crypto market by 2035 according to the article?

AThe crypto market in India is projected to reach $15 billion by 2035.

QWhat was the reported user base of crypto traders and investors in India in 2025?

AIndia reported a user base of around 100 million crypto traders and investors in 2025.

QHow does Sumit Gupta believe reducing TDS would benefit the Indian crypto ecosystem?

AHe believes reducing TDS to 0.01% would lower compliance costs, bring more users to regulated platforms, eliminate offshore migration, and keep transactions visible under the government's purview.

QWhat global factors are mentioned as contributing to crypto market volatility?

AThe article mentions US employment data, a court's verdict on Trump's tariff, and a potential bipartisan sanctions bill that could increase tariffs to 500% as global factors contributing to market volatility.

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