<p>Bengaluru: As Donald Trump emerged the winner in the US elections early last month, the crypto market led by Bitcoin soared to euphoric heights, given the President-elect’s support to the blockchain currency, with him even hinting at possibly creating a strategic reserve for bitcoin. That was before the US Federal Reserve’s hawkish outlook on rate cuts presented last week. Reaction to that and profit-taking saw Bitcoin crash from a peak of $108,000 to $93,000, with other cryptocurrencies such as Ethereum, BNB, Solana, Dogecoin, and Cardano, too following suit. However, <strong>Sumit Gupta</strong>, co-founder and CEO of India’s home-grown crypto trading platform, CoinDCX, remains optimistic about what 2025 holds for the sector. In a free-wheeling conversation with <em>DH</em>’s <strong>Anushree Pratap</strong>, he spoke of not just the global scenario for crypto but also the challenges India poses to the virtual currency segment. Edited excepts:</p>.<p><br><strong>Has Trump’s win given a new breath of life to cryptocurrency? Do you see it sustaining past the fall we’re seeing now? </strong></p>.<p>Yes. Bitcoin’s price trajectory demonstrates its resilience and long-term potential, even amidst short-term market fluctuations. While the asset has faced corrections after crossing significant milestones such movements are inherent to any asset class. Profit booking by investors following key levels, is a natural response in a dynamic market.</p>.<p>The Federal Reserve’s recent comments on interest rates and broader macroeconomic indicators have created ripples across both traditional and crypto markets. While short-term pressure has been observed, Bitcoin's ability to weather such challenges with declines comparable to equity markets highlights its growing maturity as an asset class.</p>.<p>Bitcoin is trading at $97,600, recovering from the $92,000 support level. This volatility underscores the market's nature, driven by evolving investor sentiment and technical indicators. Despite these fluctuations, Bitcoin remains well-positioned to sustain its upward momentum over the long term, supported by growing institutional interest and increased adoption.</p>.<p>We believe the industry is poised for robust growth well into 2025. With increasing utility for blockchain technology, regulatory advancements, and the expanding ecosystem of decentralised applications, the crypto sector is entering a transformative phase.</p>.<p>New projects will also come up which will get more capital globally. It will trigger from the steps that the Trump administration is taking, and the downstream impact of that will be far wider and likely global in nature. I do expect a lot of other countries to rush towards regulations, but when the US makes it a priority, then nobody wants to miss out on the technology. The last couple of years were very muted because in the US, there was so much enforcement.</p>.<p><span class="bold"><strong>How has the lack of a regulatory framework and taxation of transactions affected crypto investments in India?</strong></span></p>.<p>The current taxation framework is damaging the industry. After the introduction of high taxes, a lot of the volumes on Indian platforms which were in oversight of the government moved offshore out of view of governments. This also does not protect customers. It would be a big mistake if India does not come up with clarifications, because every country is doing it. Sooner or later India will, but if we lose, say, two years in the process, then a lot of the innovation that could have happened in India will move offshore, which is already happening. No one is comfortable building a crypto business in India at the moment. Right now, the best bet is self-regulations under government supervision, and then as the government learns more, continue to have an exhaustive regulatory framework and licensing regime.</p>.<p><span class="bold"><strong>Has the volatility of crypto assets been a hinderance?</strong></span></p>.<p>Volatility has gone down sharply and is bound to go down further. The asset class is a lot more stable than before. One big reason is that before it was common people investing. But now there are institutions coming in and they don't come with a short-term mindset. They make the ecosystem a lot more stable. With exchange-traded funds (ETFs) coming in, the rate at which new capital is coming into crypto is going to make the asset a lot less volatile than what it was before. With that the returns will also reduce, which is part and parcel of the investment. Before, institutions were not comfortable because there was no instrument.</p>.<p><span class="bold"><strong>Bhutan has built Bitcoin holdings valued at over $1 billion. Can other countries emulate their mining and import strategies?</strong></span></p>.<p>Countries are already doing it. Abu Dhabi is one of the biggest miners of Bitcoin. Japan, the UK, and the US also have large holdings. Bhutan is mining Bitcoin because the country has a lot of hydropower resources. I expect a lot of countries globally who have resources will continue to do that. If electricity is cheaper in a country, that will make it economically viable. A lot of Bitcoin mining is also happening through renewable sources which is an opportunity that everyone would want to leverage. Still, not every country is geographically well-positioned to do Bitcoin mining as you need cold temperatures due to the heat generated. Bitcoin mining in India may not be sustainable because it is going to be very expensive. Over the next five to ten years, I expect a lot of countries to hold Bitcoin. For example, some in the US government are doing a strategic Bitcoin reserve to strengthen US dollars backed by Bitcoin.</p>.<p><span class="bold"><strong>CoinDCX recently acquired BitOasis in the Middle East. Will your expansion plans remain inorganic, going forward?</strong></span></p>.<p>We would want to explore inorganic, but it depends on when we get exciting opportunities. As of now, nothing specific is on the cards. One is regional diversification, where we want to expand to more countries. The Middle East and India are two large markets. UAE is a good base for Middle East expansion. Second is product diversification, launching more products. There are many innovations we have built in India. One growth strategy is just to replicate what we have built and make it available to users in the Middle East. In terms of growth strategy, we are also getting licenses. We recently got a full license from Dubai's Virtual Assets Regulatory Authority, following that from the Central Bank of Bahrain.</p>
<p>Bengaluru: As Donald Trump emerged the winner in the US elections early last month, the crypto market led by Bitcoin soared to euphoric heights, given the President-elect’s support to the blockchain currency, with him even hinting at possibly creating a strategic reserve for bitcoin. That was before the US Federal Reserve’s hawkish outlook on rate cuts presented last week. Reaction to that and profit-taking saw Bitcoin crash from a peak of $108,000 to $93,000, with other cryptocurrencies such as Ethereum, BNB, Solana, Dogecoin, and Cardano, too following suit. However, <strong>Sumit Gupta</strong>, co-founder and CEO of India’s home-grown crypto trading platform, CoinDCX, remains optimistic about what 2025 holds for the sector. In a free-wheeling conversation with <em>DH</em>’s <strong>Anushree Pratap</strong>, he spoke of not just the global scenario for crypto but also the challenges India poses to the virtual currency segment. Edited excepts:</p>.<p><br><strong>Has Trump’s win given a new breath of life to cryptocurrency? Do you see it sustaining past the fall we’re seeing now? </strong></p>.<p>Yes. Bitcoin’s price trajectory demonstrates its resilience and long-term potential, even amidst short-term market fluctuations. While the asset has faced corrections after crossing significant milestones such movements are inherent to any asset class. Profit booking by investors following key levels, is a natural response in a dynamic market.</p>.<p>The Federal Reserve’s recent comments on interest rates and broader macroeconomic indicators have created ripples across both traditional and crypto markets. While short-term pressure has been observed, Bitcoin's ability to weather such challenges with declines comparable to equity markets highlights its growing maturity as an asset class.</p>.<p>Bitcoin is trading at $97,600, recovering from the $92,000 support level. This volatility underscores the market's nature, driven by evolving investor sentiment and technical indicators. Despite these fluctuations, Bitcoin remains well-positioned to sustain its upward momentum over the long term, supported by growing institutional interest and increased adoption.</p>.<p>We believe the industry is poised for robust growth well into 2025. With increasing utility for blockchain technology, regulatory advancements, and the expanding ecosystem of decentralised applications, the crypto sector is entering a transformative phase.</p>.<p>New projects will also come up which will get more capital globally. It will trigger from the steps that the Trump administration is taking, and the downstream impact of that will be far wider and likely global in nature. I do expect a lot of other countries to rush towards regulations, but when the US makes it a priority, then nobody wants to miss out on the technology. The last couple of years were very muted because in the US, there was so much enforcement.</p>.<p><span class="bold"><strong>How has the lack of a regulatory framework and taxation of transactions affected crypto investments in India?</strong></span></p>.<p>The current taxation framework is damaging the industry. After the introduction of high taxes, a lot of the volumes on Indian platforms which were in oversight of the government moved offshore out of view of governments. This also does not protect customers. It would be a big mistake if India does not come up with clarifications, because every country is doing it. Sooner or later India will, but if we lose, say, two years in the process, then a lot of the innovation that could have happened in India will move offshore, which is already happening. No one is comfortable building a crypto business in India at the moment. Right now, the best bet is self-regulations under government supervision, and then as the government learns more, continue to have an exhaustive regulatory framework and licensing regime.</p>.<p><span class="bold"><strong>Has the volatility of crypto assets been a hinderance?</strong></span></p>.<p>Volatility has gone down sharply and is bound to go down further. The asset class is a lot more stable than before. One big reason is that before it was common people investing. But now there are institutions coming in and they don't come with a short-term mindset. They make the ecosystem a lot more stable. With exchange-traded funds (ETFs) coming in, the rate at which new capital is coming into crypto is going to make the asset a lot less volatile than what it was before. With that the returns will also reduce, which is part and parcel of the investment. Before, institutions were not comfortable because there was no instrument.</p>.<p><span class="bold"><strong>Bhutan has built Bitcoin holdings valued at over $1 billion. Can other countries emulate their mining and import strategies?</strong></span></p>.<p>Countries are already doing it. Abu Dhabi is one of the biggest miners of Bitcoin. Japan, the UK, and the US also have large holdings. Bhutan is mining Bitcoin because the country has a lot of hydropower resources. I expect a lot of countries globally who have resources will continue to do that. If electricity is cheaper in a country, that will make it economically viable. A lot of Bitcoin mining is also happening through renewable sources which is an opportunity that everyone would want to leverage. Still, not every country is geographically well-positioned to do Bitcoin mining as you need cold temperatures due to the heat generated. Bitcoin mining in India may not be sustainable because it is going to be very expensive. Over the next five to ten years, I expect a lot of countries to hold Bitcoin. For example, some in the US government are doing a strategic Bitcoin reserve to strengthen US dollars backed by Bitcoin.</p>.<p><span class="bold"><strong>CoinDCX recently acquired BitOasis in the Middle East. Will your expansion plans remain inorganic, going forward?</strong></span></p>.<p>We would want to explore inorganic, but it depends on when we get exciting opportunities. As of now, nothing specific is on the cards. One is regional diversification, where we want to expand to more countries. The Middle East and India are two large markets. UAE is a good base for Middle East expansion. Second is product diversification, launching more products. There are many innovations we have built in India. One growth strategy is just to replicate what we have built and make it available to users in the Middle East. In terms of growth strategy, we are also getting licenses. We recently got a full license from Dubai's Virtual Assets Regulatory Authority, following that from the Central Bank of Bahrain.</p>