India remains one of the few significant economies without a comprehensive crypto and stablecoin policy framework despite leading the world in crypto adoption for the third consecutive year with nearly 120 million crypto users in 2025. While frameworks take time, and complexity deserves deliberation, what is worth examining is what has happened in that absence.
Indian crypto platforms have built products and services to fill a gap that left India’s demand turning to unverified offshore platforms. And as is the nature of most digital markets, what they are building is moving faster than any policy discussion currently in motion.
The passive investing layer no one legislated for
The most underappreciated development in Indian crypto is the emergence of the disciplined SIP investor. India’s SIP culture, built over decades through equity markets, has found a new expression in digital assets. These investors look at crypto not as a get-rich-quick scheme but as a portfolio diversification tool.
Instead of going all in on a single bet, today’s Indian crypto investor prefers investment products that resemble index funds with passive exposure, periodic rebalancing, and fractional entry points. These products exist and are being used, and taxes are paid on them because Indian crypto platforms have built them. Yet, there is no policy framework or regulatory category for them.
Stablecoin rails in a policy vacuum
India’s diaspora cross-border remittance is one of the largest in the world, exceeding $135 billion annually in 2025. The inefficiencies in these payments, like delays, forex margins and intermediary costs, are precisely the problem that stablecoin-based payment infrastructure is designed to solve.
Cross-border settlement has emerged as the most mature use case, with businesses settling invoices and managing international payroll in minutes rather than days. The United States passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), establishing a clear regulatory framework for USD-backed stablecoins. The European Union has MiCA (Markets in Crypto-Assets), while Singapore has its stablecoin regulatory framework.
Platforms building cross-border payment infrastructure for India are doing so without knowing whether the instruments they are building on will be classified as payment instruments, securities, or something else entirely.
Tokenisation without a legal home
Real-world asset tokenisation, which is the process of converting property, gold, commodities, private equity, and infrastructure assets into blockchain-native, tradable tokens, is arguably the most consequential application of blockchain technology for India’s economy. It addresses financial inclusion by enabling fractional ownership of assets that only the wealthy were previously able to benefit from.
India’s tokenisation market is growing, with real estate commanding the largest share. SEBI has experimented with SM REITs (Small and Medium Real Estate Investment Trusts) and Infrastructure Investment Trusts (InvITs). But there is no unified framework governing how tokenised securities are classified, transferred, or taxed across jurisdictions. Indian crypto platforms are building such tokenised products today that will collide with regulatory definitions that have not been written yet.
The cost of building without clarity
What is often missed in this conversation is that Indian crypto platforms are making significant investments in compliance. Between KYC infrastructure, AML and CFT transaction monitoring, FIU-IND registration, and collecting and reporting 1% TDS on every crypto transaction, the compliance stack is substantial.
Indian platforms are paying the full cost of operating in a regulated environment without receiving the benefits of one. Legal classification of products remains ambiguous, leaving platforms to operate under conditions that combine maximum tax burden with minimum regulatory clarity. Such policy delay risks pushing both talent and capital to offshore platforms and alternate jurisdictions.
What clarity would actually unlock
India needs a crypto regulatory framework that distinguishes trading infrastructure from DeFi protocols, gives stablecoins a legal classification, and creates a home for tokenised assets. This will accelerate innovation in a sustainable manner that meets the needs of Indian investors while living up to rigorous compliance standards.
Due to its global and borderless nature, the technology is not waiting for permission. Policy must arrive in time to shape what is being built.
