Crypto Drama: CoinSwitch and Trilegal’s Bold Move in India’s VDA Saga!

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Key Highlights

  • In a most exhilarating twist, CoinSwitch’s Co-founder unveils the ‘Block by Block’ report, crafted in exquisite partnership with Trilegal & NUJS Law Review, destined to enlighten India’s labyrinthine crypto regulation.
  • Ashish Singhal, the ever-optimistic visionary, ardently insists that India’s crypto laws should be sculpted from the solid rock of scholarly and legal inquiry-because who needs common sense when you have research?
  • With an eye on tax rationalization and the fanciful concept of “Regulatory Sandboxes,” this compendium aspires to lure back the trading volume from far-off exchanges into the warm embrace of domestic, compliant platforms.

In a market that has meandered through years of heavy taxation and a fog of legal ambiguity, the discourse surrounding Virtual Digital Assets (VDAs) in India is now experiencing a rather dramatic metamorphosis.

Our gallant hero, Ashish Singhal, Co-founder of CoinSwitch, recently proclaimed the birth of “Block by Block,” a research compendium that promises to illuminate the nation’s path towards a brighter crypto future-if only it could stop tripping over its own legal shoelaces.

This literary endeavor is the fruit of an intriguing collaboration with the esteemed law firm Trilegal and the NUJS Law Review Kolkata, a veritable think tank aimed at enlisting India’s most brilliant legal minds to tackle the “crypto conundrum.” How riveting!

Crypto regulation in India will not merely be forged by industry or government.

It shall also be molded by rigorous research.

Last year, we engaged Trilegal and @NUJSLawReview Kolkata in an academic contest, inviting law and public policy students across the land to propose regulatory pathways for Virtual…

– Ashish Singhal (@ashish343) February 17, 2026

The initiative is spearheaded by none other than CoinSwitch, the largest crypto trading platform in India, alongside the illustrious Jaideep Reddy (Partner at Trilegal) and the sagacious Dr. Shameek Sen (Professor at NUJS).

They summoned forth a jury to sift through the finest research papers from law and public policy students across India, ensuring that the proposals were anchored in “structured thinking” rather than merely the whims of industry sentiment. Despite boasting over 20 million crypto enthusiasts, our dear nation still lacks a formal VDA (Virtual Digital Asset) Act. Oh, the irony!

The Research-Led Vision

“If India hungers for enduring regulation, it must embrace structured thinking,” Singhal wisely remarked. The “Block by Block” report argues vehemently against the folly of a “one-size-fits-all” approach-because why make things simple when they can be complicated?

This compendium transcends mere advocacy; it boldly presents intricate solutions to the five most pressing “pain points” of the Indian ecosystem. It delineates specific strategies for taxation, classification, compliance, consumer protection, and innovation-truly a smorgasbord of possibilities!

  1. Functional Classification: Departing from the archaic notion of treating all “crypto” as indistinguishable, the papers advocate a tiered system where stablecoins, NFTs, and utility tokens are governed by distinct guidelines tailored to their risk profiles-how novel!
  2. Harmonizing Tax Policy: While the 2025 Budget introduced mandatory reporting, “Block by Block” delves into aligning these requirements with the existing 30% tax to prevent users from fleeing to overseas, unregulated exchanges. Genius, isn’t it?
  3. Compliance: Crafting a seamless KYC and AML (Anti-Money Laundering) framework-because who doesn’t love a good bureaucratic dance?
  4. Consumer Protection: Establishing safeguards against market volatility and fraud-what a refreshing idea!
  5. Innovation: Ensuring regulations do not suffocate the very blockchain technology they seek to govern. A delicate balance, indeed!

This compendium effectively provides the Ministry of Finance and the RBI with a peer-reviewed “plug-and-play” policy framework, ready to be adopted with minimal fuss.

While the report was ceremoniously launched digitally and disseminated throughout policy circles in New Delhi, its primary impact is intended for the 20 million+ Indian crypto aficionados. Presently, many of these adventurers have sought refuge in offshore exchanges to escape the clutches of the domestic 1% TDS and the formidable 30% flat tax. This report endeavors to create a “level playing field” that might entice them back into the regulated Indian fold.

A Collaborative “Sandbox” Approach

The timing, one might say, is nothing short of serendipitous. As of February 2026, the G20 Roadmap on Crypto Assets (initiated during India’s presidency) is being localized by various jurisdictions, while the Indian government seems to favor “partial oversight” over sweeping legislation to avoid any systemic risk. “Block by Block” offers a middle ground: Regulatory Sandboxes-a lovely metaphor!

Ashish Singhal remarked that “policy conversations require greater depth.” For too long, the discourse has been a binary affair: “ban vs. legal tender.” This report bravely attempts to fill the “intellectual gap” between those two extremes, focusing on how to shield users while permitting the asset class to flourish-a balancing act that has baffled regulators since the unfortunate tax imposition of 2022.

The compendium proposes a functional classification of assets. For instance, a “utility token” designed for a decentralized application ought not to be treated or taxed the same way as a “payment token” or an investment vehicle. By refining these definitions, the report illustrates how India can enforce the Prevention of Money Laundering Act (PMLA) and FEMA guidelines without stifling the burgeoning Web3 startup culture that has taken flight to Dubai and Singapore.

For years, the Indian crypto industry has languished in a “gray zone” of uncertainty. This report signifies a strategic pivot by major exchanges like CoinSwitch-shifting away from mere advocacy toward delivering the government a ready-to-use legal blueprint. It sends a clear signal that the industry is poised to self-regulate and engage collaboratively on complex matters like consumer safety.

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2026-02-17 12:04