India’s crypto story is moving forward, but not without controversy. In an exclusive interview with Coinpedia, Ashish Singhal, Co-founder of CoinSwitch, breaks down where things stand, from CBDCs and UPI dominance to Budget 2026, taxation, and why startups are quietly looking to the mainland.
UPI Rules, But CBDC Plays A Different Game
Singhal points out that India lacks payment systems. The Unified Payments Interface has already made tasks easier, whether it’s paying vendors or splitting bills.
But CBDC does not compete with UPI. It’s something deep.
He explains that CBDC is essentially a digital currency issued by a central bank, like a ₹100 note, but on your phone. Its real power lies in the context in which it is used. Government aid can be programmed to cost real money, and emergency funds can reach citizens immediately without intermediaries.
In his words, UPI is the “road,” while CBDC is the new “vehicle” that is moving. For users, the experience will not change, but the backend will be very powerful.
Budget 2026: Sound Without Help
India Budget 2026 kept crypto taxes unchanged, continuing to be one of the world’s most complex regimes.
Singhal does not see this as an attempt to kill the retail industry, but to control it. This policy has brought clarity and compliance, although high taxes and 1% TDS have resulted in some jobs being done offshore.
He said the government is prioritizing proper investment and compliance with the law. But in the future, a balanced tax system, consistent with other asset classes, could unlock real growth and sustain innovation in India.
Founders Looking… and Moving
Furthermore, legal misunderstandings remain a bigger problem than taxes.
Singhal points out that many Web3 startups are heading to places like Dubai, Singapore, and Hong Kong, where clear regulations make it easier to get banking, capital, and partnerships.
India still has a strong advantage, its developed infrastructure and consumer market. But without clear and effective control, that boundary can slowly erode.
Bitcoin ETFs and What’s Next
On the question of Bitcoin ETFs, Singhal takes a conservative view.
He says that India is still figuring out the basics, how cryptocurrencies are distributed, who controls them, and how to protect money. Investments like ETFs will only come after the foundation is established.
However, the global trend, especially after the approval of the US ETF, is difficult to ignore. Institutional demand in India is already building, especially among investors who want exposure without holding crypto directly.
Why Lawsuits Are Slower Than Adoption
Singhal ends up with a real check.
Crypto is not just another sector; covers financial regulation, taxation, AML, and financial stability. This means that multiple controllers are involved, which naturally slows things down.
India, he says, is taking a “risk-taking” approach, building railways through taxation and following and watching how international trends change.
Adoption, at this time, does not wait. It is market-driven, proactive, and policy-driven.
And this difference, between speed and structure, is where the future of Indian crypto will be decided.
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