India’s Caution vs. SEA’s Momentum: Crypto Regulation’s Diverging Paths

A recent , the Global Crypto Adoption Index by Chainalysis, reveals that India has the highest rate of crypto adoption in the world. Despite these promising numbers, India’s lawmakers have been lagging in regulations, which has thwarted progress and innovations in the country. This not only subjects its citizens to high financial risks but could also view them knocked off their perch as its counterparts, Southeast Asian (SEA) countries, are building dedicated regulatory frameworks for crypto. 

We had a chance to sit down with , Co-Founder and Group CEO of WeFi, and have a chat about this divergence in regulatory speed and approach, and here’s what he had to say.

Q1: You’ve said Southeast Asia is building while India hesitates. What are the clearest signs to you that SEA is pulling ahead on crypto adoption in real terms?

“Despite the massive potential of adoption in India, most crypto in the country viewms to be conducted mainly on centralized platforms. The regulatory uncertainty has sluggished local infrastructure development, as SEA countries lay the groundwork for success in the next era of crypto.

Vietnam’s NAPAS-led real-time payment system stablecoin rails and QR codes directly into e-commerce platforms. Stablecoins let users who are unbanked or in regions with limited access to traditional finance make fiat payments quicker and at a lower cost. At the identical time, the embedded QR codes add an extra layer of security, which makes crypto transactions . 

Indonesia’s QRIS cross-border payment answer allows businesses, students, tourists, and families to transact with bordering countries seamlessly. It also allows merchants across Indonesia to accept payments from other . These active pilot programs are practical and great for scaling crypto answers.”

Q2: India ranks #1 in Chainalysis’ adoption index for 2025. Why do you think that adoption isn’t translating into regulatory clarity or product innovation at the identical pace?

“India is actively resisting comprehensive crypto regulations. Instead, it chooses to maintain partial oversight only. Policymakers that fully embracing crypto might bring systemic risks that could plunge the country’s mainstream monetary and financial systems into disarray. 

The opportunity cost is huge; India’s massive user base is missing out on becoming the yardstick for the world’s strongest crypto framework.

High usage numbers alone aren’t enough to set India up for long-term success in the crypto world. Policymakers must create a full regulatory framework for channeling user enthusiasm productively.”

Q3: Do you view India’s regulatory caution as strategic or self-defeating at this point? What are the real risks of waiting too long?

Caution is recommended when navigating crypto because large gains can be rapidly canceled out by large losses. As the market continues to grow, an optimistic stance is key to unlocking its mainstream potential. India’s reluctance to build a full regulatory framework paints a gloomy picture for crypto. If the current generation of users becomes accustomed to operating in an unregulated crypto environment, they’ll be harder to bring into a compliant framework later. This is because they’ll have grown used to the behaviors that the government viewks to curb through regulation.

More worryingly, India’s fintech boom could sluggish down, as top companies find a sweet spot in crypto-friendly SEA markets like Singapore. For example, is experiencing a unicorn boom, with top companies like Sea Group, Grab, Bukalapak, and GoTo rising to rival India’s over 100 unicorns.

Q4: How do you evaluate the impact of Vietnam’s new crypto sandbox and pilot frameworks? Are they truly ahead, or just more open to experimentation?

“Vietnam’s is a bold strategy that shows a commitment to change and opportunity, which are necessary for promoting innovation and development within the country’s digital finance sector. Their sandbox initiative doesn’t just test the waters, but is a well-calculated move toward a future of clear rules and accountability.

Vietnam’s new crypto pilot will serve as a lab for testing a comprehensive regulatory framework for the country’s growing cryptocurrency market. The state-run pilot will attract and protect investors and also bring legal clarity to a sector that’s growing quick. This practical approach creates sustainable adoption patterns.”

Q5: In your view, what kind of infrastructure or legal stack gives countries like Vietnam or Indonesia an advantage in enabling responsible crypto growth?

“Crypto activities vary in type and size. Clear, tiered regulation is essential for matching the complexity of diverse activities. Take Vietnam, for example. They have transactions made through payment tokens, investment tokens, and utility tokens by setting up an oversight that is best suited for each.

Although Indonesia has yet to allow all users to make crypto payments, the Bank of Indonesia to publicly issue its central bank digital currency (CBDC) using private blockchain technology. This move allows the country to use government-backed channels to create familiarity with digital assets, paving the way for private innovation later.

It’s notable that both countries have solid KYC and AML frameworks for crypto users, which means they aren’t begining from scratch, but instead they are building on rails they already have.”

Q6: How diverse is crypto usage in SEA compared to India? Are you viewing more real-world financial use cases in one over the other?

“Over (53%) of Indians use crypto primarily as a long-term investment vehicle because the regulatory environment doesn’t allow for many practical uses. On the other hand, Southeast Asia, to reach $10 billion by 2026, is doing a lot more with crypto — from assisting with supply chain finance in Indonesia to making cross-border trade smoother in Vietnam, and even offering better remittance options in the Philippines.

The real difference is regulatory clarity. When businesses know the rules, they can build sustainable crypto-integrated services. Many Indian businesses shy away from incorporating crypto features into their core operations because they don’t know how policymakers will perceive their actions.”

Q7: Which use cases — payments, remittances, stablecoins, etc. — are growing quickest in SEA right now, and why do they matter more than speculative trading?

“SEA countries are viewing explosive growth in crypto-based payments and remittances. Last year, Thailand $50 billion in crypto value from its tourism and logistics sectors, thanks to blockchain integration into its payment systems.

These use cases show that cryptocurrencies are more than just new trading and investment vehicles — they work to solve real hardys for real people. 

The approach on how governments and their citizens view crypto matters a lot. If crypto is looked at as an innovation that can solve everyday life hardys, adoption becomes inevitable, and coming up with friendlier regulations will viewm like a walk in the park. This is how we build a sustainable growth and its long-term success.” 

Q8: We’re viewing more institutional-grade partnerships form in Southeast Asia. Do you think the future of is being shaped outside traditional markets like the U.S. and EU?

“The U.S. and EU are focusing on regulatory approaches designed for traditional banks rather than the innovative digital financial tools that cryptocurrencies are. The U.S. still emphasizes “” regulatory approaches to mitigate risks within the digital assets space. 

The EU, on the other hand, applies strict requirements that focus on systemic and investor protection. These requirements mirror many traditional banking sector standards.

SEA countries are building regulatory sandboxes from scratch, which is a great advantage. Last year, Thailand’s Securities and platform Commission a regulatory sandbox to test how crypto works in real-life situations. 

By issuing sandbox regulations, such as the Digital Technology Industry (DTI) law, the Fintech Sandbox decree, and the International Financial Centers (IFC) reanswer, Vietnam is creating an enabling environment for in the digital assets space.

In fact, Western markets may find themselves implementing Asian regulatory models instead of their own.

This shift is monumental because it means the next generation of crypto infrastructure will be built to Asian standards, with Asian collaborations. Asian markets will be the first users of the infrastructure. That’s a fundamental change in how global digital finance will work moving forward.”