• The COINS Act is a model law developed by Hashed Emergent and Black Dot to offer regulatory clarity for India’s crypto sector.
  • It proposes a new regulatory body, CARA, and calls for a national Bitcoin reserve funded by seized assets and market buys.

India’s crypto ecosystem may be on the verge of a major policy shift with the release of the COINS Act, a model law jointly developed by Web3 venture firm Hashed Emergent and policy advisory group Black Dot.

Officially titled the Crypto-systems Oversight, Innovation and Strategy (COINS) Act, the framework was unveiled on Monday and aims to guide India toward a more inclusive and innovation-friendly crypto regulatory landscape.

Though non-binding, the COINS Act presents a comprehensive legislative proposal to address long-standing pain points in the Indian digital asset ecosystem, including lack of regulatory clarity, punitive taxation, and the absence of a dedicated crypto authority.

Turning Crypto Chaos Into Clarity

Vishal Achanta, senior legal counsel at Hashed Emergent, told Cointelegraph that the law seeks to transform India from a “regulatory minefield” into a hub for crypto innovation.

The proposed law recommends the creation of a new regulatory body, the Crypto Assets Regulatory Authority (CARA), and draws from international frameworks like the EU’s MiCA and Singapore’s regulatory sandbox, tailored to India’s specific needs.

The COINS Act also introduces a rights-first framework, outlining legal protections for self-custody, financial privacy, and protocol access.

It proposes differentiated compliance rules depending on custody type, with centralised exchanges requiring full licenses, non-custodial protocols subject to disclosure, and permissionless protocols exempt.

Achanta noted that India has seen a wave of crypto innovation relocate offshore due to tax burdens and unclear laws.

The model law aims to reverse this trend by providing regulatory certainty and innovation-safe zones.

It also calls for a national Bitcoin reserve funded through seized assets and small market buys, an idea aligned with recent calls from political figures like BJP spokesperson Pradeep Bhandari.

To encourage adoption, Hashed Emergent will co-host events with the Bharat Web3 Association, while Black Dot plans workshops with key regulatory bodies. The creators emphasise community engagement over closed-door lobbying to push the model forward.

Edited by Annette George