India Is Sitting on a Crypto Goldmine — Binance Boss Says One Law Could Trigger a Mass Adoption Explosion
Why India’s Crypto Regulation Could Decide the Future of Retail Adoption
The global debate over digital assets returned to center stage this week at the World Economic Forum in Davos, where policymakers, executives, and financial leaders gathered to discuss the future of money. Among the most closely watched conversations was the renewed focus on India’s crypto regulation, an issue many industry leaders believe could determine whether the country becomes a global digital asset powerhouse or remains stuck in regulatory limbo.
That message was delivered bluntly by Richard Teng, the Co-CEO of Binance, who described India as the “grassroots capital of crypto” but warned that without clear rules, the country risks wasting its enormous potential.
 |
| Source: X(formerly Twitter) |
India already has one of the world’s largest bases of crypto users, driven by a young, tech-savvy population and widespread smartphone adoption. Yet despite this organic growth, large-scale retail and institutional participation remains limited. The reason, Teng argues, is not a lack of interest or innovation, but uncertainty.
A Market Ready to Explode, Held Back by Policy Uncertainty
India’s digital economy has expanded rapidly over the past decade, with fintech innovation reshaping how people save, spend, and transfer money. Crypto adoption followed a similar path, spreading quickly at the grassroots level through peer-to-peer trading, developer communities, and decentralized applications.
However, the absence of a clear regulatory framework has created what Teng calls a “sleeping giant” scenario. Millions of users are already engaged with digital assets, but broader retail adoption remains constrained as mainstream users wait for clarity from policymakers.
Retail investors, particularly those outside major urban centers, tend to be cautious. Without explicit guidelines on taxation, compliance, consumer protection, and legal status, many prefer to stay on the sidelines. According to industry analysts, regulatory clarity is often the single most important factor determining whether crypto transitions from niche adoption to mass-market use.
Crypto and UPI Are Not Enemies, Industry Leaders Say
One of the most persistent concerns in India’s policy debate is whether crypto could undermine the country’s highly successful payment infrastructure, especially the Unified Payments Interface (UPI).
UPI has become a global benchmark for real-time digital payments, processing billions of transactions each month and powering India’s cashless economy. Some policymakers fear that crypto adoption could weaken this system or fragment the payments landscape.
Teng rejected that framing outright.
He argued that crypto and UPI serve fundamentally different purposes and should be viewed as complementary rather than competitive. UPI excels at domestic payments, offering instant, low-cost transfers within India’s banking system. Digital assets, by contrast, are designed for borderless, programmable transactions that operate around the clock.
For individuals and businesses moving money across borders, particularly in trade, remittances, and treasury management, digital assets and stablecoins can reduce costs dramatically while settling transactions in minutes instead of days.
In this sense, crypto does not replace UPI. Instead, it fills gaps that traditional payment systems were never built to address.
Stablecoins and the Global Shift in Finance
A central theme at Davos this year was the growing role of stablecoins in global finance. These digital assets, typically pegged to fiat currencies, are increasingly used for payments, liquidity management, and cross-border settlements.
Teng pointed out that stablecoins now move more value on a daily basis than many traditional payment networks. In some regions, they are already used by corporations to manage international cash flows more efficiently than through correspondent banking systems.
For India, which is one of the world’s largest recipients of remittances, the implications are significant. Clear crypto regulation could enable Indian users and businesses to access faster, cheaper global payment rails while maintaining strong consumer protections.
Without regulatory clarity, however, these innovations risk developing offshore, leaving India as a consumer rather than a creator of next-generation financial infrastructure.
The U.S. Example: A Regulatory Turning Point
To underscore his argument, Teng pointed to developments in the United States, where crypto regulation took a decisive turn in mid-2025. The passage of comprehensive digital asset legislation marked what many describe as a “vibe shift” in Washington.
Following regulatory reforms, stablecoin market capitalization surged, transaction volumes expanded rapidly, and institutional participation accelerated. Traditional finance firms that once viewed crypto with skepticism began integrating digital assets into their operations.
One striking comparison highlighted at Davos was transaction volume. Stablecoin networks are now processing volumes comparable to, and in some cases exceeding, those of Visa on a daily basis.
For India, the lesson is clear. Regulatory hesitation does not stop innovation; it simply pushes it elsewhere.
Talent Migration and the Risk of Falling Behind
India has long been recognized as a global hub for software engineering, fintech innovation, and blockchain development. Many of the world’s leading crypto startups and protocols have Indian founders or core engineering teams.
However, regulatory uncertainty increases the risk of talent migration. Developers and entrepreneurs are increasingly willing to relocate to jurisdictions with clearer rules, stronger investor protections, and more predictable compliance requirements.
Industry leaders warn that without decisive action, India could lose not only capital but also intellectual property and strategic influence in shaping the future of global finance.
Clear crypto regulation would not mean deregulation. On the contrary, it would provide guardrails that encourage responsible innovation while protecting consumers and financial stability.
Binance’s Strategic Interest in India
For Binance, the stakes are especially high. The exchange recently surpassed 300 million users globally and processed tens of trillions of dollars in trading volume last year. Its long-term ambition is to reach one billion users worldwide.
India is seen as indispensable to that goal.
Despite operating in a regulatory gray zone, Binance has reported continued growth in Indian user activity, including rising institutional interest. Teng noted that institutional trading volume on the platform grew significantly over the past year, even amid market volatility.
This trend suggests that demand exists, but scale remains limited by regulatory ambiguity.
CBDCs Versus Private Digital Assets
Another topic discussed in Davos was the global cooling of enthusiasm around central bank digital currencies (CBDCs). While many governments initially viewed CBDCs as a way to modernize money, progress has been slower than expected.
Teng argued that while CBDCs may play a role in domestic monetary systems, they do not replace the need for open, programmable digital assets. Private sector innovation, he said, continues to drive the most meaningful advances in payments, settlement, and financial interoperability.
For India, this raises important questions about balance. A regulatory framework that allows private digital assets to coexist alongside public payment systems could unlock innovation while preserving monetary sovereignty.
What Regulatory Clarity Could Unlock
Experts suggest that effective crypto regulation in India could unlock several key outcomes:
Increased retail confidence, encouraging broader participation beyond early adopters
Greater institutional involvement from banks, asset managers, and fintech firms
Stronger consumer protections through licensing, disclosure, and compliance standards
Retention of domestic talent and capital within India’s innovation ecosystem
Deeper integration with global digital finance infrastructure
These benefits, however, depend on policy choices made over the next few years.
Conclusion: A Defining Moment for India’s Digital Economy
India stands at a crossroads in its crypto journey. The country already has the users, the talent, and the technological foundation to lead the next phase of digital finance. What it lacks, industry leaders argue, is regulatory clarity.
As Richard Teng’s remarks at Davos made clear, the opportunity cost of inaction is rising. Other nations are moving decisively, positioning themselves as hubs for blockchain innovation and digital asset adoption.
Whether India chooses to lead or follow will depend on how it approaches crypto regulation in the years ahead. For millions of potential retail users, the answer could shape how they save, invest, and participate in the global digital economy.
hokanews.com – Not Just Crypto News. It’s Crypto Culture.