After the WazirX exploit, the crypto asset sector is struggling with its reputation in India, acknowledges CoinDCX CEO Sumit Gupta.

The hacking incident at WazirX, where the notorious North Korean Lazarus Group took $235 million from the digital currency exchange, had a significant impact on the feelings of Indian crypto asset investors. Following the breach, users shifted to platforms they deemed more reliable.

In a discussion released on May 5, 2025, Sumit Gupta, the CEO of Indian crypto exchange CoinDCX, spoke about the present condition of the crypto environment in India. He emphasized that the Indian trading market has advanced considerably, with over 1.6 crore (16 million) Indians actively utilizing exchanges similar to CoinDCX for their daily digital currency activities.

Notably, platforms that conformed to rigorous Know Your Customer (KYC) and anti-money laundering (AML) standards became the favored options for investors wishing to secure their funds. Gupta mentioned that CoinDCX also witnessed a rise in user registrations, larger digital wallet deposits, and KYC completions, showcasing a notable shift towards the network.

In the interview, Gupta remarked that while digital currency still deals with a perception issue, recent happenings have significantly contributed to building confidence. He noted that as nations like the US and Europe adopt a more organized approach to crypto asset, the sector has seen regulatory ambiguities being clarified to encourage expansion and innovation.

Interestingly, the Supreme Court of India on Monday characterized Bitcoin trading within the country as a more sophisticated variant of “Hawala,” an unofficial and often illegal means of money transfer.

The highest court criticized the government for postponing the creation of a regulated framework, as a related case was brought up two years prior, prompting the court to seek a policy clarification that went unanswered.

The remarks from the Supreme Court occurred during a bail hearing for Shailesh Babulal Bhatt, who was detained for illegal Bitcoin trading and has been incarcerated since 2023. His attorneys contended that the Supreme Court had annulled the Reserve Bank of India’s circular that limited crypto asset transactions.

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CoinDCX Witnessed 12% Increase In User Base In The Past Six Months

He noted that CoinDCX has seen a 12% rise in its user base over the previous six months, with a large portion of this increase attributed to equity investors. Gupta pointed out that the substantial market fluctuation and potential returns in the market draw these individuals as opposed to conventional investments.

Throughout the previous half-year, CoinDCX recorded a solid growth in its user engagement, although its spot trading volume faced some variations. The trading volume surged dramatically from 216 million in October to 794 million in November, peaking at $995 million in December 2024; however, the numbers dropped noticeably in February and March 2025, registering $483 million and $388 million, respectively.

CoinDCX indicated a trend of cooling trading activity following a strong finish to 2024.

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Market Instability Due To Geopolitical Conflicts

Gupta acknowledged the data issued in the Global Crypto Adoption Index by Chainalysis, which has positioned India as the top country for two consecutive years regarding grassroots crypto adoption, highlighting the widespread acceptance and potential of crypto asset in the nation.

Exciting announcement for India’s Web3 ecosystem

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This strategic listing bolsters our presence in one of the globe’s fastest-expanding crypto markets — providing seamless access to $L1X.… pic.twitter.com/XusI2c9RoC

— LayerOneX (@LayerOneX) May 6, 2025

Gupta noted that 75% of cryptocurrency investors in India are under 35 years of age, affirming a strong interest in this asset class among younger individuals.

However, Gupta stressed that crypto market price swings due to geopolitical tensions, such as the newly imposed US tariffs, also influences crypto holder confidence in India. Actions taken in the US and Europe that impact global market dynamics also affect local trading volumes and market fluidity.

He mentioned in his interview that a worldwide transition towards a clear regulatory framework for crypto and increased institutional adoption of this asset class could provide a significant boost to the Indian cryptocurrency market.

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The article Post WazirX Exploit Crypto Faces An Image Problem In India, Admits CoinDCX CEO Sumit Gupta first appeared on 99Bitcoins.