Post WazirX Hack Crypto Faces An Image Problem In India, Admits CoinDCX CEO Sumit Gupta

The WazirX hack, which saw the infamous North Korean Lazarus Group steal $235 million from the crypto exchange, notably affected the sentiments of the Indian crypto investors. Post the hack, users migrated to more trusted platforms.

In an interview published on 5 May 2025, Sumit Gupta, the CEO of CoinDCX, a crypto exchange based in India, discussed the current state of the Indian crypto landscape. He noted that the Indian market has significantly matured, with more than 1.6 crore (16 million) Indians actively using platforms similar to CoinDCX for their daily cryptocurrency transactions.

Importantly, platforms that adhered to stringent Know Your Customer (KYC) and anti-money laundering (AML) policies became preferred choices for investors to park their funds. CoinDCX, too, Gupta said, saw a surge in user registrations, increased wallet deposits, and KYC completions that indicated active migration to the platform.

Gupta, in the interview, stated that although crypto still faces an image problem, recent developments have done much to build trust. With countries like the US and Europe adopting a structured approach towards crypto, the industry has seen regulatory uncertainty being addressed to foster growth and innovation.

Interestingly, the Supreme Court of India on Monday labelled Bitcoin trading in the country as a more refined version of “Hawala”, an informal and often illegal money transfer system.

The apex court criticised the government for delaying the establishment of a regulated framework, as a similar case was presented two years ago, prompting the court to ask for a policy clarification, but it received no response in return.

The Supreme Court’s remarks were made during a bail hearing for Shailesh Babulal Bhatt, who was arrested for illegal Bitcoin trading and has been in custody since 2023. His lawyers, however, argued that the Supreme Court had struck down the Reserve Bank of India’s circular restricting cryptocurrency transactions.

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CoinDCX Experienced 12% Growth In User Base Over Last Six Months

He said that CoinDCX itself has experienced a 12% growth in its user base over the last six months, with a sizeable chunk of this surge coming from equity traders. Gupta highlighted that the crypto market’s high volatility and potential returns attract these users as opposed to traditional investments.

Over the past six months, CoinDCX has seen a solid increase in its user base, though its spot trading volume has experienced some fluctuations. The company’s trading volume climbed steeply from 216 million in October to 794 million in November, reaching $995 million in December 2024, although, the numbers dipped significantly in February and March 2025, recording $483 million and $388 million, respectively.

CoinDCX indicated a cooling trend in trading momentum after a strong end to 2024.

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Market Uncertainty Caused By Geopolitical Tensions

Gupta acknowledged the numbers published in the Global Crypto Adoption Index by Chainalysis, which ranked India as the leading country for the last two consecutive years, when it comes to grassroots adoption of crypto, reflecting crypto’s widespread acceptance and potential in the country.

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Gupta pointed out that 75% of the crypto investors based in India are under the age of 35, confirming an enthusiasm for this asset class among the younger generation.

However, Gupta emphasised that market uncertainty caused by geopolitical tensions, case in point, the recently announced US tariffs, also affects investor sentiments in India. Decisions taken in the US and Europe that shape the global crypto market dynamics also impact domestic trading volumes and liquidity.

He stated in his interview that a global shift towards a clear crypto regulatory framework and institutional adoption of the asset class can boost the Indian crypto market.

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