India's Cryptocurrency Warning: Regulatory Risks Outweigh Market Volatility

Radhika Gupta, managing director and CEO of Edelweiss Mutual Fund, warned investors in India not to buy cryptocurrencies due to weak investor recourse. The main risk lies not in volatility but in platform failure, which can block access to assets entirely.

Gupta made her comments at the India Today Woman Summit 2026. She noted that while Bitcoin's daily price fluctuations are a significant concern, regulatory risks can become even more problematic over time.

India has one of the world's largest crypto markets, according to Chainalysis' Global Crypto Adoption Index. In the past year, an estimated $338 billion in on-chain value entered India, with WazirX being one of the most popular platforms.

The regulatory gap in India is significant. While tax authorities recognize cryptocurrency transactions for tax purposes, investors lack protections available through regulated securities intermediaries. The Financial Intelligence Unit-India does not publicly list registered VDA service providers, and users may incorrectly assume registration guarantees protection or recourse after fraud or losses.