Indian Web3 Firms Propose Comprehensive Crypto Framework
Hashed Emergent and Black Dot released the COINS Act on Monday, providing India's parliament with a detailed regulatory blueprint. According to Cointelegraph, the Crypto-systems Oversight, Innovation and Strategy Act offers legislative guidance for crypto rights and oversight structures.
The model law addresses three core areas affecting Indian crypto users. Legal counsel Arvind Alexander told the publication that builders face unclear Anti-Money Laundering mandates and lack express rights to self-custody and privacy. The framework proposes creating the Crypto Assets Regulatory Authority to oversee crypto activities. COINS Act incorporates global standards from EU's MiCA regulation and Singapore's regulatory sandbox, adapted for India's constitutional context.
The model includes specific provisions for different crypto business types. Centralized exchanges would face full licensing requirements under the proposed framework. Non-custodial protocols would operate under simple disclosure rules, while permissionless protocols receive complete compliance exemption.
Why This Legal Framework Matters For India
The COINS Act directly targets India's restrictive crypto environment that has driven companies offshore. Senior legal counsel Vishal Achanta explained that DeFi protocols, gaming studios and infrastructure projects relocated abroad to escape punitive taxation and regulatory uncertainty. The model law provides solutions to reverse this trend through rights-first certainty and innovation safe harbors.
Current tax policies create substantial barriers for crypto users in India. The Income Tax Act imposes a 30% flat rate on virtual digital asset profits, according to Sanctionscanner. The government also applies 1% tax deducted at source on transactions exceeding $115. These policies differ sharply from the COINS Act approach of protecting fundamental crypto rights as constitutional extensions.
The proposed legislation includes a strategic Bitcoin reserve recommendation for India. We previously reported that fifteen US states are advancing Bitcoin reserve legislation, demonstrating growing government adoption of crypto treasury strategies. The COINS Act suggests India create its reserve using legally seized crypto assets overseen by parliament, with additional funding through modest market purchases.
Global Regulatory Trends Support India Framework Approach
The COINS Act aligns with worldwide regulatory developments moving toward comprehensive crypto frameworks. Recent analysis shows that 93% of Financial Stability Board members plan new crypto frameworks, with 88% developing stablecoin regulations, according to PwC's Global Crypto Regulation Report 2025. European Union's MiCA regulation entered full effect in December 2024, while Asian financial centers like Singapore lead with improved licensing regimes.
India's crypto landscape shows significant potential despite regulatory challenges. Over 150 million Indians use cryptocurrency as of 2025, making it one of the largest global markets. Polygon saw 40% growth in Indian wallets after government blockchain projects, demonstrating domestic appetite for digital assets.
The model law creators plan workshops with key regulatory bodies including the Ministry of Finance and Reserve Bank of India. Alexander emphasized community collaboration over private negotiations, taking inspiration from Bitcoin's decentralized principles. This approach reflects growing confidence that user pressure will eventually force favorable policy adoption.
International precedent supports the COINS Act strategy of establishing clear rights before implementing oversight. Countries with proactive crypto frameworks have attracted innovation while maintaining financial stability. The proposal offers India an opportunity to position itself as a digital asset destination rather than continuing policies that drive talent and investment abroad.
