India’s crypto community may finally see light at the end of the tunnel. On July 21, 2025, Web3 venture firm Hashed Emergent and policy think tank Black Dot unveiled the COINS Act — a comprehensive model law that aims to transform India’s chaotic crypto landscape into a global hub for digital assets.
A Clear Framework Where There Was None
The Crypto-systems Oversight, Innovation and Strategy (COINS) Act is a non-binding model law that proposes legal clarity, user rights, and smart regulation. While it doesn’t hold legal authority yet, it offers Indian lawmakers a ready-made blueprint to modernize crypto policy.
Key proposals include enshrining self-custody, protocol access, and financial privacy as legal rights, tailored to India’s Constitution.
The law also recommends creating a dedicated regulator — the Crypto Assets Regulatory Authority (CARA) — to oversee the sector. The model borrows global best practices from the EU’s MiCA framework and Singapore’s regulatory sandbox, localized for Indian realities.
Tackling Tax, Uncertainty, and Developer Exodus
India’s current crypto regime includes a 30% flat tax on gains and 1% TDS on every transaction over ₹9,500 ($115) — making it one of the world’s most hostile tax environments for crypto.
Legal experts say this has driven builders and startups offshore, leading to a “brain drain” in DeFi, Web3 gaming, and infrastructure.
“We flipped the script,” said legal counsel Arvind Alexander. “COINS starts by enshrining fundamental crypto rights, then builds oversight around custody and control.”
Under the proposal:
- Centralized exchanges must obtain full licenses.
- Non-custodial platforms face only simple disclosures.
- Truly decentralized protocols are exempt from compliance.
A Bitcoin Reserve for India?
The COINS Act even suggests creating a national Bitcoin reserve by converting seized digital assets and making modest market purchases. This follows recent calls by Indian politicians to explore Bitcoin as part of national economic resilience.
Such a reserve would be managed under parliamentary oversight, enhancing transparency and strategic value.
Next Steps: Education and Engagement
To push adoption, Hashed Emergent and Black Dot plan to hold workshops with the Ministry of Finance, SEBI, and the Reserve Bank of India, as well as community sessions comparing the COINS Act with pending regulations.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.