India's Crypto Market Sees Institutional Growth Amid Regulatory Hurdles

India's cryptocurrency market is at an inflection point, with growing participation from institutions and high-net-worth individuals (HNIs) increasing confidence in digital assets.

Gaurav Singh, Head of Spot at crypto exchange Mudrex, believes that the shift towards institutional investment is quieting building confidence in crypto across the country, despite regulatory uncertainty and a tough tax regime.

According to Singh, HNI interest is rising rapidly as wealthier investors become more comfortable with digital assets, allocating more attention and capital to crypto. He notes that this type of investor behaves differently from retail flows, tending to be longer-term, less reactive to short-term price swings, and more focused on portfolio diversification.

However, Singh also highlights the challenges facing India's crypto market, including unclear regulations and a complex tax framework. The government's confirmation that it will keep the current tax structure unchanged for the 2026-27 fiscal year has discouraged some investors from actively trading or increasing their exposure.