Binance Asia Pacific Head Points to Limited Private Participation Behind Slow Crypto Growth in India

India’s cryptocurrency ecosystem may be experiencing slow market momentum due to modest private market participation in the region, according to SB Seker, Asia Pacific Head of cryptocurrency exchange Binance.

In a recent discussion, Seker addressed questions regarding market interest in cryptocurrency within India, pointing to a distinct preference for government-led growth in the country's digital sector. He noted that while India has seen significant public digitization efforts, private involvement has lagged behind.

“There have been many digitisation initiatives in India: UPI, tokenisation sandboxes or experiments. What is not as committed or as quickly moving is private market participation or the explicit licensing of private market participants to drive this business,” Seker said. He added that the current approach appears to favor government leadership in building scale and infrastructure before permitting private participation, noting that regulatory bodies like SEBI and RBI have also begun exploring blockchain initiatives.

Despite the current policy direction, Seker expects the sector's architecture to eventually evolve into a hybrid model. Looking ahead to the national budget, he outlined specific expectations for the cryptocurrency sector.

“I just want to see the importance of this industry reflected in the budget. That is your defining document for the nation for the next 6 months to 12 months. So, I want to see more importance allocated to this industry, whether it’s a tax reform, licensing reform or financial incentives. Any of those would indicate to me that this is becoming more of a main feature rather than a sideshow,” Seker noted.

Alongside these regulatory observations, Seker shared updates regarding Binance's broader business strategy. The company is currently working toward becoming a super app by expanding its platform offerings to include other asset classes demanded by global users.

Binance has started offering tokenized versions of various instruments to its international user base, subject to specific market limits. According to Seker, this expansion covers commodities such as gold and silver, pre-IPO stocks, and companies like SpaceX, noting that this segment of the business is experiencing rapid development.

"The observations made regarding India's digital ecosystem highlight a crucial balance between state-led infrastructure and private sector innovation. Public digital rails like UPI have successfully laid the foundation for mass adoption in India. However, for emerging sectors like blockchain and cryptocurrency to mature, regulatory clarity around private licensing and tax frameworks will be essential. As the market evolves toward a potential hybrid model, founders and investors must closely monitor policy signals from institutions like SEBI and RBI to align their long-term business strategies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes