In an exclusive chat with cryptowatchdesk.com, Nischal Shetty, the man behind India’s largest crypto exchange, talks about hitting that first payout for users, India's Section 509 crypto reporting penalties and new milestones for Sikka.fun.
The WazirX Recovery Token buyback threshold is set at $10M in quarterly profit. How close is the exchange to hitting that first payout for users?
"The Recovery Token structure was designed to align platform growth with user restitution in a transparent way. While we don’t comment on exact revenue timelines publicly, our focus is on building sustainable business fundamentals that can support consistent distribution over time. The important point is that the mechanism exists, is clearly defined, and ties recovery directly to platform performance. This ensures that as the ecosystem grows, users benefit proportionally. We understand that users are eager for the first milestone, and we share that urgency."
Our priority is ensuring that any buyback is backed by genuine, recurring profitability rather than short-term spikes.
Lack of Crypto Regulation In India
The new Section 509 reporting penalties went into effect on April 1st. How do we stop these heavy fines from scaring away the next generation of Indian developers?
"Regulatory clarity is important, but it must be balanced with innovation incentives. Excessive compliance burdens can unintentionally push talent toward jurisdictions that offer more supportive frameworks."
India has one of the strongest developer communities in the world. To ensure this talent continues building locally, we need clear guidelines, reasonable thresholds, and collaborative dialogue between regulators and industry participants.
"Our role as industry builders is to engage constructively with policymakers, share technical insights, and advocate for proportionate frameworks that protect users without stifling innovation.
Ultimately, the goal should be to ensure that Indian developers can compete globally while operating within a regulatory environment that recognises the unique nature of decentralized technologies."
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Expanding into Nigeria, Indonesia, Vietnam is not about pivoting away from India
Sikka.fun hit 5,000 users and 400+ coins in a week. Is social-first, fair-launch crypto finally the key to winning back the Indian retail market? The company is expanding into Nigeria, Indonesia, and Vietnam this month. Are you officially pivoting to build a Web3 stack for the Global South?
We’ve always believed that the next wave of crypto adoption will come from markets where access to financial opportunity has historically been limited.
"What we’re seeing with Sikka.fun is strong validation that social-first, fair-launch environments resonate deeply with retail users, especially in emerging markets where users want participation, not gatekeeping.
The early traction of 5,000 users and 400+ coins in the first week shows that people are eager to experiment, create, and engage when the barriers are lowered. Fair-launch mechanics reduce information asymmetry and help create a level playing field, which is essential for rebuilding trust with retail users.
Expanding into Nigeria, Indonesia, and Vietnam is not about pivoting away from India, it's about building for markets that share similar characteristics: mobile-first populations, strong developer talent, and a desire for more open financial infrastructure.
Our broader vision remains consistent: enable participation in Web3 in a way that is simple, transparent, and community-driven. If that naturally results in stronger adoption across the Global South, that is a positive outcome of building products that prioritize accessibility and fairness."
You’re currently running Phase 3 of the SHM airdrop for WazirX users on Sikka.fun. Is this platform now your primary engine for making users whole?
"Sikka.fun is one of several initiatives aimed at creating new opportunities for users within the ecosystem. The SHM airdrop reflects our belief that value creation can come from participation in emerging networks, not just centralized platforms.
However, it would be inaccurate to frame any single product as the sole mechanism for restitution. Our approach is multi-layered, combining operational improvements, ecosystem participation, and long-term growth initiatives.
What matters most is that users have multiple pathways to recover value, and that these pathways are aligned with the broader evolution of Web3."
WazirX has transitioned to BitGo and third-party oversight. What is the biggest hurdle left in convincing the 'OG' community that the platform is truly secure?
"Trust is built through consistent actions over time, not announcements. Moving custody infrastructure to BitGo but we recognise that the community will evaluate security based on sustained transparency and operational discipline.
The biggest hurdle is not technical, it is emotional. Many early users feel a deep sense of ownership of the platform, and rebuilding confidence requires open communication, measurable safeguards, and a willingness to be accountable.
We believe that industry-grade custody, improved governance processes, and continuous disclosure will gradually demonstrate that the platform is constantly evolving its security best practices."
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