Liquidity and Market Recovery

According to Shetty, concerns over liquidity had caused significant panic in the past. However, the latest data shows a clear improvement. After restarting INR and USDT markets, buying momentum surged as traders sought to capitalize on improved price stability.

Shetty added that the exchange is deliberately introducing new trading pairs in phases to avoid panic selling and ensure stable liquidity flows. He emphasized that the phased launch helped rebuild trust gradually, allowing users to adapt to the new ecosystem after earlier disruptions.

Customer Trust and Transparency

The exchange’s trust rebuilding efforts have been systematic. WazirX partnered with BitGo, a well-known custody provider for cold wallets, ensuring the safety of the majority of user funds. Enhanced transparency and communication with users have improved satisfaction scores from 68% in the first phase to 73% in the fourth.

Shetty noted that re-establishing user confidence after the security incident will take time but said WazirX is enforcing trading fees for the next 30 days to stabilize liquidity and prevent speculative manipulation. The focus now is to ensure operational security through real-time audits and stronger internal controls.

Legal Backdrop: Crypto as Property

The Madras High Court’s ruling recognizing cryptocurrency as property under Indian law has given a strong legal foundation to digital assets. However, Shetty clarified that this does not directly change WazirX’s operational or custodial status. “It doesn’t impact our restructuring scheme; the judgment mainly clarifies classification, not regulatory mechanics,” he explained.

While the recognition aids legitimacy, insurance for crypto assets remains a challenge. Shetty noted that despite the ruling, banks and insurers still require more regulatory clarity before extending cover to crypto-based businesses. He emphasized the need for India to develop a robust, transparent digital asset insurance framework aligned with global standards.

Restructure, Restart, Rebuild — The Three-Point Plan

WazirX’s strategy now revolves around a structured three-stage plan to revive growth and regain leadership in India’s crypto trading ecosystem:

• Restructure: Cleanse legacy issues, phase-wise reopen INR and USDT markets, and resolve liquidity mismatches.
• Restart: Reintroduce secure wallet operations with strict custody solutions and transparent fee structures.
• Rebuild: Deliver long-term value by compensating affected customers and improving the overall trading experience through new features over the next few months.

Shetty confirmed that the firm will continue expanding its token pairs, adding more fiat options, and focusing on improving mobile trading infrastructure. He said, “We’ve restarted and are already seeing improved engagement and liquidity. Now comes the rebuilding phase, where trust and transparency will be key differentiators.”

Outlook for India’s Crypto Sector

India’s cryptocurrency ecosystem is entering a more defined regulatory phase following recent judicial and policy developments. Recognition of crypto as property provides a clearer tax and asset ownership pathway, which could help attract institutional participation in the long run. However, Shetty cautioned that for sustainable growth, the ecosystem needs standardized compliance norms, user education, and clarity on taxation frameworks.

He added that the company’s ongoing dialogue with policymakers and regulators focuses on developing user protection norms, insurance guidelines, and tax simplifications to make crypto adoption safer for Indian investors.