Sumit Gupta News

The $230 million hack on Indian crypto exchange WazirX last month, has alerted CoinDCX to plan ahead in case of such security breach. CoinDCX, India’s leading crypto exchange, has established a $5.9 million fund for customer protection to compensate users during such events.

Donald Trump to create a “strategic Bitcoin reserve and digital assets stockpile” has sent the crypto enthusiasts in India into a tizzy. Hoping to cash in on what they believe could be the next big rally, they have led a surge in trading volumes, with CoinDCX reporting a 36% hike and Mudrex registering a 30% spike. While the reserve will only include Bitcoin, already owned by the US government, not acquired or actively bought, the digital asset stockpile will consist of tokens other than the Bitcoin—Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA), which will also not be acquired. The announcement is significant because it’s the first time that Bitcoin has been recognised as a reserve asset of the US government. “This sends a powerful message to the world about how blockchain and digital assets are becoming mainstream,” says Sumit Gupta, co-founder of CoinDCX. Agrees Edul Patel, Co-founder of Mudrex: “There is a strong future for crypto and Bitcoin globally, not just in the US.”

WazirX’s recent security breach, which saw the theft of approximately $230 million, the exchange’s decision to distribute the loss among all users has sparked intense criticism. Sumit Gupta, Co-Founder of CoinDCX, has condemned the move, labeling it as “utter nonsense.” Sumit Gupta voiced his criticism on X (formerly known as Twitter), stating, «The first contribution to losses should ALWAYS come from the Company (i.e. WazirX in this case) and the treasury and assets the company holds. I have not seen any such commitment around this from the company side, instead making customers directly absorb the 45% losses is utter nonsense. The poll options are also framed in a manner to protect the business first and not the customers.»

Crypto exchange CoinDCX has elevated Mridul Gupta as its founding partner, the company said on Tuesday. In his new role, Gupta will be responsible for meeting the company's growth goals, focusing on international expansion, building teams and driving profitability. In addition, he will continue to be responsible for the India market, strengthening the firm's product portfolio, marketing, partnerships and operations to accelerate its growth in the country.

price surge in the past seven months, Bitcoin lost over 16% in April making it the worst month for the cryptocurrency since November 2022. This marks a notable shift from the euphoria of the hype cycle built around the Bitcoin halving event that occurred on April 18. The downward spiral is triggered mainly because of outflows from spot ETFs (exchange-traded funds) in the US. ET explains the factors behind current market volatility. What is Bitcoin Halving?

Meanwhile, at 4.20 pm, the crypto token was trading 4% higher at $3,830. It has also gained nearly 65% in the last one month, and over 145% in the past one year.

Bitcoin surge: Why should you still not invest in cryptos? These are 7 key reasons Bitcoin's staggering surge of almost 160% since October, with a remarkable 44% spike occurring solely in February, presents a stark juxtaposition to the crypto winter of 2022. During that period, the market endured an 18-month-long downturn characterized by notable corporate bankruptcies and scandals.

In a panel discussion hosted by ETMarkets, Sumit Gupta, Co-Founder of CoinDCX, outlines key drivers for crypto trading in India: regulation and conducive environment. Additionally, he shed light on CoinDCX's rigorous framework for listing cryptocurrencies and offered insights into the challenges and opportunities of building in this evolving environment. Edited excerpts:

Budget 2024 looms on the horizon, the Indian crypto industry is buzzing with expectations, eager to witness how the Central Government will shape the regulatory landscape for virtual digital assets (VDAs). A focal point for industry experts is the pressing need for changes in the classification and taxation of these assets. One prominent demand from experts is the abolition of the 1% Tax Deducted at Source (TDS), a measure currently in place. Analysts argue that this TDS rate hampers investor participation by causing capital losses with each trade, discouraging potential investors from entering the crypto market. Leading voices in the industry have articulated their hopes for Budget 2024:

Binance Holdings Ltd. acrimoniously split with its Indian affiliate WazirX in 2022, the world’s largest cryptocurrency exchange looked near-invincible in the local market while WazirX was flailing. A government crackdown on offshore platforms has abruptly reversed the competitive dynamics. Since Indian authorities in late December began restricting access to Binance and other foreign crypto exchanges operating there without local registrations, traders have flocked to domestic rivals like WazirX. Many of them are moving deposits across from Binance, according to the local venues. It’s a welcome reprieve for WazirX and competitors like CoinDCX and CoinSwitch Kuber, which were pummeled by a 2022 taxation regime that drove traders to offshore exchanges. They appear poised for further gains after Apple Inc.’s App Store this week took down the apps of Binance and seven other foreign exchanges after a request from India’s government. Deposit inflows at WazirX jumped about 250% in the four days following India’s Dec. 28 compliance show-cause notice to nine offshore platforms, compared with the four days leading up to it, according to the company. CoinDCX reopened for deposits right after the event and they immediately began pouring in, CEO Sumit Gupta said.

Binance Holdings Ltd. acrimoniously split with its Indian affiliate WazirX in 2022, the world’s largest cryptocurrency exchange looked near-invincible in the local market while WazirX was flailing. A government crackdown on offshore platforms has abruptly reversed the competitive dynamics. Since Indian authorities in late December began restricting access to Binance and other foreign crypto exchanges operating there without local registrations, traders have flocked to domestic rivals like WazirX. Many of them are moving deposits across from Binance, according to the local venues. It’s a welcome reprieve for WazirX and competitors like CoinDCX and CoinSwitch Kuber, which were pummeled by a 2022 taxation regime that drove traders to offshore exchanges. They appear poised for further gains after Apple Inc.’s App Store this week took down the apps of Binance and seven other foreign exchanges after a request from India’s government. Deposit inflows at WazirX jumped about 250% in the four days following India’s Dec. 28 compliance show-cause notice to nine offshore platforms, compared with the four days leading up to it, according to the company. CoinDCX reopened for deposits right after the event and they immediately began pouring in, CEO Sumit Gupta said.

cryptocurrency exchanges are recording higher trading volumes, deposits, and user registrations following Financial Intelligence Unit's (FIU’s) decision on December 28, 2022, to issue compliance show-cause notices to nine global crypto exchanges along with a request to the IT ministry to block their URLs for not adhering to Indian regulatory norms. Leading Indian crypto exchange Coin DCX has recorded a sharp increase in deposits post-FIU's action. “CoinDCX witnesses a phenomenal 2000% surge in crypto deposits as investors prioritise compliance and security. The fact that CoinDCX is the first FIU-registered entity and ISO-certified is working for us. We have enabled crypto deposits, and the process of transferring virtual digital assets (VDAs) from other platforms to CoinDCX is straightforward and hassle-free,” said Sumit Gupta, co-founder & CEO of CoinDCX, which has over 1.4 crore users on its platform currently. “Even our signups have gone up by 2X.” Another prominent crypto exchange, CoinSwitch, witnessed a jump in trading volumes. It also reinstated crypto deposits on Thursday, a service which it had suspended last year.

CoinSwitch crypto exchange is the latest crypto trading platform in India that cut its workforce amid the prolonged cryptocurrency winter, the local news agency Moneycontrol reported on Aug. 28.

Indian Crypto exchange CoinDCX, backed by Coinbase Ventures, fired 12% of its workforce on Tuesday, citing ongoing macroeconomic conditions and the TDS on crypto transactions.

crypto exchange CoinDCX on Tuesday said it is laying off about 12% of its workforce, as the crypto market continues to navigate the tough macro conditions and impact of TDS on domestic exchanges. CoinDCX founders Sumit Gupta and Neeraj Khandelwal said in a blog post that to help the impacted employees, «we have put together a support package consisting of severance pay equivalent to the full notice period, additional one month of salary, variable pay and incentives dues, encashment of unutilised leaves, extension of health insurance & wellness benefits and access to counseling support». «We had to make a tough choice that involved bidding farewell to some of our brilliant and dedicated team members at CoinDCX. We are deeply sorry for this, and we bear its weight, both in responsibility and in emotion,» they added. The company said that prolonged bear market and impact of TDS on domestic exchanges had a significant impact on its volumes and, thus, revenues. «To adapt, we undertook several proactive measures, including direct cost optimisation and investment in automation to drive efficiency and productivity.

Investor sentiment has always been a critical driver in the crypto space. Both positive and negative sentiment influence ongoing trends — be they price movements, product launches or regulations. In 2022, sentiment worldwide suffered as major crypto firms and ecosystems collapsed, further straining investors amid an unforgiving bear market.

Crypto investors in India expect a more friendly tax regime for digital assets and parity with other assets and regulations when finance minister Nirmala Sitharaman tables the budget for FY24 in less than two months.

Indian crypto entrepreneurs said they are implementing measures to provide full transparency on their reserve funds to win back investor confidence after the collapse of FTX, the world’s third-largest crypto exchange by trading volumes.

The Blockchain and Crypto Assets Council (BACC) will no longer exist, according to the Internet and Mobile Association of India (IAMAI). The BACC is being disbanded. According to a statement from the IAMAI,

The Internet and Mobile Association of India (IAMAI) said in a statement on July 14 that it is dissolving the Blockchain and Crypto Assets Council (BACC) owing to the uncertain regulatory environment for the crypto industry.

cryptocurrency firms as part of its ongoing probe into alleged instances of foreign exchange violations, if any, by these firms, sources said. ED has sent out notices to cryptocurrency exchanges seeking further information under the Foreign Exchange Management Act (FEMA), they added. Crypto trading platform CoinDCX’s founder Sumit Gupta joined the federal agency’s probe at its Bengaluru office earlier this month, the sources said.