India’s crypto industry may finally be headed towards regulatory clarity. Web3 venture firm Hashed Emergent and policy group Black Dot have unveiled the COINS Act. This is a model law designed to address long-standing confusion around digital assets in the country.
Short for Crypto-systems Oversight, Innovation and Strategy Act, the COINS Act aims to give Indian lawmakers a clear legislative framework. While the model law is non-binding and has no legal effect unless adopted by Parliament, it is a comprehensive proposal that prioritizes user rights, tailored regulation, and innovation.
The COINS Act aims to establish digital rights, such as self-custody of crypto assets, access to blockchain networks, and financial privacy, as core freedoms. It argues that these rights should be treated as constitutional protections, which Indian law currently does not offer to crypto users or developers.
The Act also suggests setting up a new regulator called the Crypto Assets Regulatory Authority, or CARA. This body would handle how crypto services operate within India, with its focus kept strictly on the local scene. It wouldn’t interfere with what the RBI or SEBI already do, and it wouldn’t try to oversee global, decentralized systems either.
When it comes to regulation, the Act takes a layered approach. Centralized platforms holding customer funds would need licenses. Platforms that don’t hold funds would only need to meet light disclosure requirements.
Truly decentralized protocols would be left alone. And importantly, developers would be protected from being blamed for how people use the code they write.
To support innovation, the Act suggests a two-year grace period for token launches in India. During this time, new projects could grow without facing heavy restrictions. It also proposes putting a pause on Foreign Exchange Management Act (FEMA) rules for crypto during that period to help cut down on red tape.
One of the more ambitious ideas is to create a national Bitcoin and crypto reserve. The proposal suggests using seized or modestly purchased digital assets to build a strategic reserve, which would be managed by Parliament.
Arvind Alexander, Legal Counsel at Hashed Emergent, who co-authored the model law, said the lack of formal legal rights for users and developers, combined with extreme taxation, has pushed India’s crypto ecosystem into a grey zone.
“We therefore flipped the policy script,” he said. “COINS Act starts by enshrining fundamental crypto rights as extensions of India’s Constitution, making them inviolable.”
His colleague, Vishal Achanta, Senior Legal Counsel at Hashed Emergent, added that the model is designed to reverse the ongoing trend of Indian Web3 talent moving abroad. “It aims to turn India into a destination of choice rather than a regulatory minefield,” he said.
Their concerns echo recent political voices. On June 26, BJP spokesperson Pradeep Bhandari called for regulatory clarity and suggested launching a Bitcoin reserve pilot to strengthen India’s economic security.
Industry leaders have welcomed the initiative. Aishwary Gupta, Global Head of Payments at Polygon Labs, said, “The COINS Act is a constructive step forward—it shows that the industry is maturing and ready to co-create policy with the government. Its tiered approach, differentiating between protocol developers, intermediaries, and custodians, is aligned with global best practices.”
He added, “If it can serve as a reference for India’s upcoming frameworks, we’ll be moving toward clarity without stifling innovation. India has no shortage of talent, but in the absence of clear guardrails, developers often look overseas to register entities or deploy products. India should aim to build frameworks that are interoperable with global norms, giving local builders a passport to operate abroad with credibility.”
In the weeks ahead, Hashed Emergent plans to host a joint session with the Bharat Web3 Association to discuss the Act alongside the Indian government’s forthcoming crypto discussion paper. Meanwhile, Black Dot will hold workshops with the Ministry of Finance, SEBI, and RBI to present the model law.
While it’s not yet official policy, the COINS Act has reignited momentum for crypto regulation in India, grounded in rights, built for innovation, and aiming for global alignment.
Also Read: India’s Crypto Paper Expected Soon: CoinSwitch CEO
