Binance's Vishal Sacheendran Discusses India's Crypto Potential Amid Market Dips

 Binance's Vishal Sacheendran Discusses India's Crypto Potential Amid Market Dips

In an exclusive conversation with YourStory, Vishal Sacheendran, Head of Regional Markets at Binance, shared his insights on the growing crypto landscape in India and the increasing institutional interest in the digital asset class. The conversation shed light on how India is rapidly emerging as a crypto hub, as well as Binance's strategies for navigating the market, compliance challenges, and expanding adoption.

India: A Rising Crypto Powerhouse

India has been at the forefront of global cryptocurrency adoption, a trend that was highlighted in the 2024 Chainalysis report, which revealed that India led the world in crypto adoption for the second consecutive year. This surge in adoption has attracted the attention of global exchanges like Binance, who recognize India’s massive untapped potential.

Binance, the world’s largest crypto exchange by trading volume, re-entered the Indian market in August last year after resolving its compliance with the Financial Intelligence Unit of India (FIU-IND). More recently, Binance secured a historic $2 billion investment from Abu Dhabi-based MGX, marking the largest institutional investment in a crypto company. This significant investment is seen as a testament to the growing institutional acceptance of the crypto space.

India's Market Potential and Institutional Adoption

According to Sacheendran, India’s internet and mobile penetration have laid a solid foundation for crypto adoption. “The infrastructure was already in place. The real question was how people could understand and use crypto,” he noted. While retail investors have been early adopters, institutional investors were initially hesitant due to regulatory uncertainties. However, the recent approval of crypto ETFs in the US and parts of Asia has provided the legitimacy crypto needed to attract institutional interest.

As India’s regulatory environment continues to evolve, Sacheendran believes that once clearer regulations are in place, institutional players will follow suit. He highlights the growing participation of sovereign wealth funds like Mubadala, which have made indirect investments in crypto via Bitcoin ETFs, as a sign of this trend.

Regulatory Outlook and Crypto ETFs in India

Sacheendran acknowledges that India is currently in a regulatory “waiting phase,” where the government is focused on basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) compliance. However, as regulatory clarity improves, he anticipates a more robust framework that will encourage institutional investments in crypto. He predicts that the arrival of crypto ETFs in India is imminent, as Indian investors are increasingly eager for more investment options.

Binance’s Focus on Education and Compliance

One of Binance’s primary objectives in India is educating both institutional and retail investors about crypto. Through initiatives like Binance Academy and partnerships with universities, the company is working to bridge the gap between crypto innovators, regulators, and the public. In addition to fostering education, Binance is collaborating with law enforcement agencies to ensure the crypto ecosystem remains secure and transparent.

The Evolving Investor Mindset

Sacheendran also observed a shift in investor behavior in India, noting that investors are increasingly holding onto their crypto assets for the long term rather than engaging in quick buy-sell trading. This shift is partly driven by the entry of institutional investors, who bring stability and a long-term perspective to the market. As regulatory clarity increases and more institutional players step in, this trend of holding and long-term investing is expected to grow.

The Current Market Dip: A Natural Cycle

When asked about the recent drop in Bitcoin prices, Sacheendran referred to the dip as a natural part of the crypto market's volatility. “Six months ago, Bitcoin was around $60,000, and even with this so-called ‘fall,’ it’s still hovering around $90,000. That’s not a crash—it’s just the normal cycle of the market,” he said. He further emphasized that seasoned investors view these dips as opportunities, and he expects prices to rise as adoption and institutional investment continue to grow.

Binance’s Role in Strengthening the Indian Crypto Ecosystem

Regarding Binance’s position in the competitive Indian market, Sacheendran reiterated that Binance’s goal is not to outpace competitors, but rather to expand the entire crypto ecosystem. With only around 2% of the global population currently involved in crypto, Binance’s ultimate aim is to increase adoption and bring the next billion users onto the platform.

Sacheendran's focus is on the broader picture: “A 50% share of a $1 trillion market is very different from a 30% share of a $100 trillion market. Our focus is on getting more people into crypto, not just on competing for users in a single market.”