"India should focus on smart regulation over restriction"

As India transitions from a near crypto-ban to a cautiously optimistic regulatory stance, few voices have been as influential in shaping the dialogue as Ashish Singhal, Co-Founder of CoinSwitch and Group CEO of PeepalCo.

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CoinSwitch, India's largest crypto investing platform with over 2 crore users, stands at the forefront of the country's digital asset revolution—offering secure, intuitive, and regulation-ready access to over 300 cryptocurrencies.

In this exclusive conversation, Ashish discusses India's evolving crypto regulation, the stablecoin opportunity in cross-border payments, the impact of FIU registration, and the urgent need for parity in taxation, licensing clarity, and consumer protection.

India's shift from a near-ban on crypto to cautious regulation - What's your view on how India should regulate stablecoins and crypto-linked cross-border payments to balance innovation with compliance?

India has made meaningful progress by shifting from a near-ban on crypto to a more cautious, regulatory-first approach—and that's the right direction. But when it comes to stablecoins and crypto-linked cross-border payments, India now has a unique opportunity to lead with clarity and innovation.

Stablecoins are emerging globally as powerful tools for faster, cheaper, and more transparent cross-border payments. For India—a country with one of the largest freelance workforces and remittance markets—stablecoins could improve efficiency, reduce costs, and enhance financial inclusion. However, concerns around monetary policy, capital flow risks, and financial stability are valid, especially for a country with a large and diverse economy like ours.

To strike the right balance between innovation and compliance, India should focus on smart regulation over restriction. This includes:

• Defining clear rules for different types of stablecoins—especially fiat-backed ones—so that regulators can address risks without stifling use cases like remittances or trade.

• Creating a licensing regime for issuers and platforms, ensuring that only entities meeting capital, reserve, and compliance standards can operate.