Sumit Gupta, Co-founder and CEO at CoinDCX, one of India’s largest and most established cryptocurrency exchanges and liquidity aggregators, recently shared important insights exclusively with Crowdfund Insider.
Notably, CoinDCX recently finalized a $90 million investment round, becoming India’s first crypto-focused Unicorn. During our conversation, Gupta talked about the fast-evolving digital assets space in a country that’s home to over 1.4 billion people. He also discussed how the nation’s regulators have been responding to developments in the nascent blockchain and crypto space.
Our conversation with Sumit Gupta is shared below.
Crowdfund Insider: What are the main products and services that CoinDCX offers and encourages Indian traders and investors to use and learn more about?
Sumit Gupta: As India’s safest crypto exchange and a pioneer of India’s crypto industry, CoinDCX aims to make crypto accessible in India and globally by providing the efficiency, security and compliance that investors have come to expect. For beginners and newcomers, the CoinDCX Go app provides a simple and safe way to invest.
With compliance and safety at our core, we’ve partnered with Onfido to strengthen our know-your-customer and anti-money laundering processes, as well as with BitGo to custody customer funds with a $100 million insurance.
For the more seasoned trader, CoinDCX Pro offers a wide array of features such as Lend, which provides decentralised lending services, Margin, which offers up to 10X leverage across more than 500 markets, and Futures, which offers up to 20x leverage trades on leading digital asset futures.
Education for cryptocurrency is essential, which is why we launched the DCXLearn—a full-fledged crypto learning programme with courses on crypto and blockchain to continuously address misinformation and drive public awareness in emerging technologies such as crypto and blockchain.
Crowdfund Insider: What are some new products currently in the pipeline?
Sumit Gupta: In the coming months, CoinDCX will be launching the CoinDCX Prime initiative, a HNI/Enterprise product for assisted investment in crypto baskets, as well as Cosmex, CoinDCX’s global trading product will give international users access to ⅓rd of Global Liquidity.
Other notable developments in the pipeline include partnerships with key fintech players to expand our crypto investor base, as well as setting up a Research & Development (R&D) facility. We will also push forward in our efforts to strengthen policy conversations through public discourse and foster continued collaboration with the government to introduce favorable regulations and education support programs.
Crowdfund Insider: You’ve raised $90 million in capital from leading international companies. What are you planning to do with the proceeds?
Sumit Gupta: With the current funding, we are looking to continuously pursue new business initiatives for CoinDCX, and enhance its product infrastructure and offerings, and expand its workforce.
CoinDCX will aim to bolster its growth in India and advance its vision to make cryptocurrencies accessible to 50 million users in the country. We are also actively hiring for various roles which include developers, customer success professionals, security analysts, and marketing, sales & growth professionals to support the growing business.
Currently, we are 185 employees in strength and will soon be reaching the 200 mark. Our aim is to increase our employee strength to 300 by the end of this year. With these efforts in place, we will be able to increase our user base and continue to grow our active user base through these sustained efforts.
Crowdfund Insider: Indian regulators have been quite critical of cryptocurrency trading and investment platforms But so have regulatory authorities in China and now recently in the US as well. Despite these challenges, the crypto and blockchain space continues to acquire substantial funding, while digital assets are increasingly being adopted, globally. How can we help all stakeholders adopt a more balanced approach that will ensure consumer protection yet not stifle innovation?
Sumit Gupta: Much like how the internet has fundamentally altered the way we live and work, blockchain and cryptocurrencies have the potential to change the way we participate in the global financial system, engendering greater inclusion and economic growth.
With a young population and a skilled workforce of IT developers, engineers, and entrepreneurs, India is in a strong position to be a part of this next wave of innovation — which is a tremendous opportunity to bolster the future economy.
Building out a forward-looking legal framework that provides greater clarity and certainty will allow the sector to flourish and contribute to the broader Indian economy. In addition, roundtable discussions between policymakers and industry players will play a critical role in ensuring that all stakeholders are well represented and innovation is not stifled.
Crowdfund Insider; CoinDCX is among the largest crypto trading platforms in India. However, trading volumes are still well below international standards. What do you think is needed before significantly more people in India adopt crypto -assets and launch startups that are comparable to the US and some of the leading European nations?
Sumit Gupta: The Indian market currently stands as a unique opportunity for the crypto industry, but understandably, it has not been tapped to its fullest potential. Despite 500 million active internet users, only 15 million people are exposed to crypto in the country today.
However, India is experiencing dramatic growth in demand for cryptocurrencies, and I foresee more Indians being introduced and familiarised with digital assets. For this reason, we believe it is important to focus on educating consumers, addressing misconceptions, and encouraging healthy discussions in the space so that everyone can unlock the benefits of digital assets.
CoinDCX has been at the center of efforts to support the acceptance and appropriate regulation of cryptocurrencies, working with regulators to ensure they understand the role which digital assets play in the regional and global economies.
In addition, we have also been making concerted efforts to leverage social channels, marketing campaigns, and media publications to promote greater understanding, education and adoption of crypto and blockchain.
Crowdfund Insider: India is one of the world’s fastest-growing economies and is well on its way to capture even a bigger share of the global GDP in the coming decade. How can crypto and blockchain help make India’s economy even more robust and diversified?
Sumit Gupta: Across the world, we have witnessed that blockchain and cryptocurrency adoption can provide far-reaching benefits to local economies and innovation. An opportune market to tap into, blockchain technology continues to have an increasing importance in varying industries, from supply chains to banking.
Likewise, the cryptocurrency sector has the potential to give rise to countless new entrepreneurs, new start-ups, new businesses, new innovations, new products and services, new consumers, and altogether new markets.
Far from replacing traditional finance, cryptocurrencies and blockchain have the potential to complement it and enhance its operational efficiency, offering benefits such as improved financial inclusion, the creation of more jobs, the attraction of greater investment into the economy, as well as generalized economic growth.
The traditional financial sector would also gain from added security, convenience, and transparency in payments systems, which would, in turn, provide better traceability and accountability than legacy infrastructures. As such, by investing in the industry, India stands to benefit both socially and economically.
It is clear that the Indian crypto industry holds immense potential. With decreasing data costs and the increasing availability of smartphones and high-speed connectivity, even the country’s lower-income states have seen a boost in internet users, bridging a previously wide digital divide. As one of the largest emerging markets in terms of growth and future potential, India could soon rise to become a leader in the digital assets industry as the barriers to entry get easier.