- Sumit Gupta has stated that the competition in India’s crypto market is more than expected.
- Forty-nine crypto exchanges received FIU registration during FY 2024-25.
- India is closely monitoring its crypto market.
Sumit Gupta, the Chief Executive Officer of CoinDCX, has underlined the level of competition that exists in the Indian crypto market. His statement comes after reports surfaced, highlighting the number of crypto exchanges that have registered with the Financial Intelligence Unit (FIU). India continues to monitor developments in its crypto market.
Sumit Gupta on Indian Crypto Market
CoinDCX CEO has stated that the Indian crypto market is more competitive than most people think it is. He based this on the fact that at least a hundred exchange platforms are yet to complete their registrations with the FIU, a federal agency that is responsible for reviewing the misuse of the country’s financial system.
A statement by Sumit Gupta came after reports stated that 49 crypto exchanges had registered with the FIU in FY 2024-2025. This includes 45 India-based platforms and 4 offshore platforms. Sumit’s statement emphasizes that there are 100s more exchange platforms, in addition to these 45, waiting to complete their registration.
India Monitoring its Crypto Market
India is closely and strictly monitoring the crypto market. This is evident from the imposition of penalties worth approximately ₹28 crore on non-compliant platforms during the same year. A compliant crypto exchange platform is essentially required to identify and report the ownership of wallets while monitoring crowdfunding activities by blockchain projects.
The crypto market is gaining traction in India with the potential to transform the financial sector and generate wealth creation opportunities. Per the FIU report accessed by PTI, the traction has been rather significant, and the ecosystem is rapidly evolving. A major risk identified in the same report is only in the form of money laundering and terror financing risks.
Addressing Risks
Nevertheless, India is addressing risks related to the crypto market early. It has designated FIU as the sole authority to register and monitor cryptocurrencies, referred to as virtual digital assets. Operational under the Finance Ministry, FIU is also tasked with monitoring VDA service providers, or exchange platforms.
Crypto exchange platforms are required to share bank and financial institution accounts after completing their registration. Additionally, they must appoint a director along with a principal officer with the complete contact details. Internal audits are another requirement listed by FIU on top of adopting risk-based customer due diligence.
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Source: https://thenewscrypto.com/sumit-gupta-highlights-competition-after-49-crypto-exchanges-report-fiu-registration/
