COINS Act 2025: Is India Finally About to Fix Its Crypto Laws?

What Is India’s COINS Act 2025?

India’s COINS Act 2025 is a proposed model law designed to guide the country’s future regulation of digital assets. It’s not official legislation yet, but it sets out a detailed framework that supports user rights, regulatory clarity, and innovation in the crypto sector.

Drafted by Web3 venture firm Hashed Emergent and policy think tank Black Dot, the COINS Act aims to end India’s ongoing crypto regulatory uncertainty by offering a more stable legal foundation.

Why the COINS Act Matters Now

India’s crypto policy has remained vague since 2020, when the Supreme Court lifted the RBI’s ban on banking services for crypto businesses. Since then, the government has used existing laws to manage crypto, but without a clear, unified legal framework.

This “regulatory limbo,” as experts describe it, creates confusion and discourages investment. Developers and startups often face legal grey areas, harsh taxes, and unclear KYC/AML requirements, pushing many of them to move their projects offshore.

Key Goals of the COINS Act 2025

The COINS Act sets out to address these gaps through a rights-based, crypto-native legal approach. Here's what the Act proposes:

• User Rights at the Center
  It recognizes digital rights like self-custody, peer-to-peer transactions without mandatory KYC, and privacy in blockchain-based systems. These rights are treated as fundamental, mirroring India’s constitutional freedoms.
• Crypto-Specific Regulator: CARA
  The Act calls for the creation of CARA (Crypto Assets Regulatory Authority). CARA would focus solely on crypto services in India and not interfere with decentralized protocols operating globally.
• Layered Regulation Based on Control
  Instead of a one-size-fits-all model, regulation would depend on the type of service:

1. Centralized platforms: Full licensing
2. Non-custodial projects: Disclosure-only requirements
3. Fully decentralized protocols: Exempt from regulation

• Safe Harbor for Startups
  New token projects launched in India would receive a two-year safe harbor period—an innovation-friendly window where founders are shielded from excessive regulatory burden and legal liability.
• Tax and Forex Reforms
  The proposal recommends easing the current 30% capital gains tax and 1% TDS on crypto trades. It also calls for a pause on certain foreign exchange rules to encourage investment and talent retention.

A Strategic Bitcoin Reserve

The COINS Act also includes a plan to build a national crypto reserve, potentially starting with Bitcoin. This reserve could be built using seized or forfeited assets and regulated purchases. The idea is to give India more control over its digital financial infrastructure, similar to how countries hold foreign currency or gold reserves.

While this reserve won’t be easy to build at scale through seizures alone, the COINS Act presents a structured approach to balance national interests and market stability.

How the COINS Act Could Change India’s Crypto Landscape

If adopted or used as a reference by policymakers, the COINS Act could make India a more attractive place for crypto builders and investors by:

• Clarifying Property and Privacy Rights
  By guaranteeing the right to own, transfer, and self-custody crypto-assets, it removes much of the legal ambiguity currently facing users and developers.
• Reducing the Developer Exodus
  Harsh taxes and unclear rules have forced many Web3 projects to set up outside India. The COINS Act’s safe harbor and rights-based protections aim to reverse that trend.
• Encouraging Innovation
  With fewer barriers for non-custodial and decentralized projects, the law encourages open-source development and DeFi experimentation.
• Aligning India with Global Practices
  The COINS Act draws inspiration from global models, including Europe’s MiCA and Singapore’s regulatory sandbox. It suggests that India can take a leadership role without copying foreign policies outright.

What Comes Next?

The COINS Act is not yet law. However, Hashed Emergent and Black Dot plan to present it to Indian regulatory bodies like the Ministry of Finance, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI). They also intend to hold workshops and public forums to gather feedback from the broader crypto community.

This timing is critical. The Indian government is working on a formal discussion paper on digital assets. If the COINS Act influences that paper, it could help set a modern regulatory foundation that protects users, fosters innovation, and strengthens India’s role in the global crypto economy.

FAQs

1. What is the COINS Act 2025 in India?
   The COINS Act 2025 is a proposed model law aimed at shaping India's future crypto regulations. It prioritizes user rights, regulatory clarity, and innovation through a dedicated crypto regulator and tiered compliance rules.

2. Is the COINS Act a law in India yet?
   No, the COINS Act is not an official law. It’s a policy proposal developed by Hashed Emergent and Black Dot to influence upcoming government decisions on crypto regulation.

3. What makes the COINS Act different from current crypto policy?
   Unlike India’s current ad-hoc approach, the COINS Act offers a structured, crypto-specific framework. It introduces rights for users, protections for developers, and a regulator focused only on crypto services in India.

Conclusion

India’s COINS Act 2025 is a serious attempt to move beyond outdated rules and into a framework that respects crypto’s unique architecture. It does not try to force all projects under a single regulatory umbrella. Instead, it adjusts requirements based on how centralized a service is and whether users' assets are in the custody of third parties. With clear tax reforms, legal safe harbors, and privacy protections, the Act establishes itself as a comprehensive model for the digital asset space.

If adopted, the COINS Act could stabilize the Indian crypto market, attract talent, and ensure that users and developers alike are operating under rules that make sense for decentralized technology. It’s a strong step toward finally giving crypto a proper legal home in the world’s largest democracy.

Resources:

1. India’s Crypto Tax Info: https://incometaxindia.gov.in/news/faqs-on-tax-on-virtual-digital-assets.pdf

2. The COINS Act Proposal: https://docsend.com/view/tyh76sfbj84davx4

3. Europe’s MiCA regulations: https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica