The Indian rupee has hit a record low of 88.44 against the US dollar, raising concerns about its stability, amid global market turbulence and US tariff pressures.
Adding to the debate, Binance founder Changpeng Zhao (CZ) has voiced strong criticism of India’s economic stance.
Protectionism Hurts the Economy: CZ
Reacting to the rupee’s slide, CZ criticized India’s protectionist trade policies, warning that such measures weaken long-term growth.
“Protectionism is always at the expense of the people, ie, the economy,” he said. He argued that real economic progress depends on openness and innovation, not barriers.
According to him, tariffs and trade restrictions may appear to protect local industries, but they ultimately harm consumers, businesses, and the wider economy.
India’s Hesitant Approach to Crypto
CZ’s comments come at a time when India is still holding back from creating strict cryptocurrency laws.
According to a report from Reuters, the government plans to keep a cautious eye on cryptocurrencies, and fears that fully integrating digital assets could create systematic risks.
It highlights that regulating crypto might give it legitimacy, while a total ban cannot stop peer-to-peer or decentralized trades.
India allows global crypto exchanges to operate after local registration and due diligence, and taxes gains from crypto investments. RBI has repeatedly warned of risks, keeping most trading largely separate from the formal financial system.
Path Forward Remains Challenging
Indian investors currently hold about $4.5 billion in cryptocurrencies. While the figure is notable, it does not pose a systemic threat at this stage.
Analysts point out that limited oversight has so far helped contain risks. Still, the way forward remains uncertain.
During its 2023 G20 presidency, India pushed for global crypto rules. In 2024, it planned a discussion paper on its own crypto policy but delayed it, deciding to wait until the U.S. formalizes its approach.
Earlier in July, Web3 firm Hashed Emergent and Black Dot unveiled the COINS Act, a model law to promote clarity, innovation, and user rights to Web3 policy. It was an important move toward a clearer, forward-looking Web3 policy in India.
Crypto Booms Globally as India Holds Back
While India remains cautious, crypto adoption and regulation are advancing worldwide.
Since Donald Trump returned to office, Bitcoin has surged to record highs. The United States has also introduced laws for stablecoins, with measures to support their safe integration into the financial system.
Surprisingly, even with strict regulations and a cautious government stance, India leads the world in crypto adoption. The 2025 Geography of Crypto Report by Chainalysis shows that the country tops global charts across every category of crypto activity.
