Tag: India crypto

  • Why Custody and Succession Planning Are Becoming Crypto’s Next Big Trust Challenge

    Why Custody and Succession Planning Are Becoming Crypto’s Next Big Trust Challenge

    India’s crypto market has evolved beyond early speculation. According to a June survey by Mudrex, over 41% of Indian crypto investors now identify as long-term, buy-and-hold investors. This shift toward long-term ownership brings a critical question: What happens to digital assets when the owner is no longer around to access them?

    From Speculation to Long-Term Ownership

    Prateek Gupta, Head of Business at Mudrex, noted a generational trend: short-term trading drops steadily with age. Nearly a third of investors aged 18-24 trade short-term, compared to below 8% among those aged 55 and above. “Crypto ownership in India has been shifting from short-term speculation to long-term wealth building,” he said.

    The Access Problem

    Legal ownership does not guarantee wallet access. “A family can have every legal right to a deceased holder’s assets and still be locked out without the private keys or a registered nominee,” Gupta explained. He urged platforms to build nomination, succession documentation, and estate-planning support directly into the product.

    Regulatory Framework Strengthens Investor Confidence

    As of mid-2026, 54 Virtual Digital Asset Service Providers are registered with the FIU-IND under the Prevention of Money Laundering Act, including major exchanges like CoinDCX, CoinSwitch, Mudrex, ZebPay, WazirX, and Binance. The framework mandates strict KYC, suspicious transaction reporting, and continuous monitoring.

    Nomination: A Sign of Maturity

    CoinSwitch co-founder Ashish Singhal highlighted the platform’s nomination feature, comparing it to established practices in equities. “Just as nomination is an established practice across equities and other financial assets, crypto ownership needs the same level of preparedness,” he said. The feature allows investors to nominate a person for asset transfer in case of unforeseen circumstances.

    What Platforms Must Prioritize

    Building trust requires clear nomination processes, simplified documentation for legal heirs, secure key management, transparent communication, and regular audits of custody infrastructure.

    Final Words

    India’s crypto ecosystem has matured in compliance and investor behavior. The next phase hinges on solving the succession puzzle. Platforms that build robust nomination systems and transparent custody practices will earn deeper investor confidence.

  • Crypto Futures Overtake Spot Trading in India, Tier-2 Cities Lead Retail Surge

    Crypto Futures Overtake Spot Trading in India, Tier-2 Cities Lead Retail Surge

    India’s cryptocurrency market is undergoing a significant shift, with futures trading now outpacing spot trading for the first time. Data from Indian exchange Giottus, based on its 1.3 million users, shows that crypto futures accounted for 57.22% of total trading volume between September 2025 and May 2026, while spot trading made up 42.78%.

    The surge is being driven primarily by retail investors from smaller cities. According to Giottus analysis, 48% of futures participants come from Tier-2 cities, compared to 31% from Tier-1 metros and 21% from other areas. This marks a broadening of crypto derivatives engagement beyond metropolitan hubs.

    “India’s crypto participation story is becoming geographically broader. We are seeing increasing engagement from smaller cities in products that were once viewed as niche or high-complexity,” said Vikram Subburaj, CEO of Giottus.

    Monthly user growth in futures trading remained strong throughout 2026. Participation increased 42.5% in February, followed by 28.5% in March, 35.3% in April, and 30.3% in May. Despite the rapid growth, futures users represent only 24% of Giottus’ active users, indicating substantial room for further expansion.

    Shift Toward Altcoins and Regional Dominance

    Trading behavior is also evolving. Bitcoin and Ethereum futures combined accounted for just 15.35% of total futures volume. Ethereum contributed 7.07%, Solana 5.76%, and XRP 5.24%. The data suggests Indian traders are increasingly exploring altcoins and high-volatility assets beyond the top cryptocurrencies.

    Tamil Nadu emerged as the strongest regional market, contributing 46.6% of the total number of futures traders and 59.26% of the total futures volume. Kerala ranked second with a 10.23% share.

    Balanced Risk Profiles and Evolving Trader Behavior

    Risk appetite among futures traders appears measured. Long positions accounted for 52.79% of trades, short positions 47.21%. The average leverage stood at 10x, with over 30% of trades using leverage above 10x. However, monthly liquidation ratios remained low, ranging between 0.55% and 2.52%.

    “The liquidation trends are important because they suggest participation is not entirely speculative or reckless. Users are showing greater awareness around position sizing and risk management while using leveraged products,” Subburaj noted.

    Women represented 13.24% of futures traders and used lower average leverage than their male counterparts. The most active trading hours were between 7 pm and 10 pm, aligning with post-work activity and overlapping with U.S. market hours.