Unocoin: How Dr. Sathvik Vishwanath is Building the Bank for Bitcoin in India
In 2012, a tech consultant working in the virtual world of Second Life faced a frustrating reality: to bring his earnings back to India, he had to lose nearly 7% of his money to PayPal and conversion fees. That consultant was Dr. Sathvik Vishwanath, and his search for a "middleman-free" alternative didn't just solve his problem—it sparked a revolution that would birth Unocoin, India's first dedicated Bitcoin trading platform.
Today, as Unocoin celebrates its 11th anniversary, Sathvik sits down with Priya Ranjan on the ELI Podcast to reflect on a decade-long roller coaster journey. From fighting "death blows" by the RBI in the Supreme Court to serving over 25 lakh customers, Unocoin's story is the story of crypto in India: resilient, evolving, and undeniably global.
💡 Key Insight: The 7% Pain Point
Sathvik's entry into crypto was purely practical. Losing 7% on every transaction for four years in Second Life (now known as the Metaverse) led him to discover Bitcoin in 2012. It was the promise of peer-to-peer transactions without a central authority that drew him in.
The Genesis of Unocoin: From Meetups to Mainstream
The early days of crypto in India were decentralized in the most literal sense. Sathvik recalls attending Bitcoin meetups in Bangalore in 2012, organized by his future co-founder, Sunny Ray. "People were coming there and talking about Bitcoin, but there was no place to buy it," Sathvik notes. It was the sheer inconvenience of trying to swap Bitcoin in person that led to the launch of Unocoin in December 2013.
What started as a simple trading platform has evolved into what Sathvik calls a "Bank for Bitcoin." Much like Zerodha or Upstox (ex-FivePaisa) did for equity markets, Unocoin provided the infrastructure for Indians to use their bank accounts to enter the crypto world with confidence.
Innovation Driven by Demand: SIPs and Beyond
Unocoin's feature set hasn't been built in a laboratory; it's been forged by the needs of 2.5 million users. Understanding the volatility that keeps many on the sidelines, Unocoin introduced a feature similar to a Systematic Investment Plan (SIP).
"Even when prices were 10,000-15,000 rupees, people were skeptical. So we allowed them to average their cost with daily, weekly, or monthly intervals, starting from as little as 10 rupees," Sathvik explains. This democratization of access allowed the small saver and the high-net-worth individual (investing up to 15 lakh per month) to play on the same field.
The Utility Challenge: Spending Your Satoshis
Beyond speculation, Sathvik has always pushed for utility. In the early years, Unocoin enabled users to recharge mobile phones, buy books at Sapna Book House, and even book flight tickets using Bitcoin. For merchants, the incentive was clear: **0% transaction fees** and payments arriving in their bank accounts within an hour, compared to the T+2 delays and 2% fees of credit cards.
The Merchant Advantage
- 0% Fees: Merchants receive 100% of the revenue, vs 98% with credit cards.
- Instant Settlement: Money hits the bank in 1 hour, vs 48+ hours for traditional online payments.
- Revenue Boost: For retailers with 5% margins, saving 2% on transaction fees represents a 40% increase in profit.
Navigating the Regulatory Roller Coaster
The Indian government's stance has been a "wait and watch" approach characterized by sudden turbulence. Sathvik recounts the 2018 RBI banking ban as a "death blow"—a move that sought to starve the industry of banking access. Unocoin didn't back down; they fought for two years until the Supreme Court set aside the notice in 2020, restoring the right to banking services.
"It's definitely not as blind as it used to be till 2020," Sathvik says of the current climate. With the introduction of the 30% flat income tax and 1% TDS in 2022, crypto has found a semi-legitimized, albeit heavily taxed, place in the Indian financial landscape.
⚠️ Investor Tip: Do Your Diligence
Despite the growth, Sathvik remains a voice of caution. Unocoin continues to promote the message that "it is risky in nature and one should do the research before they buy the crypto." In an industry where 80% of users are making their first-ever lifetime investment, education is paramount.
Security in a Digital Age: The WazirX Hack Aftermath
Addressing the elephant in the room—the recent **$230 million hack** of an Indian exchange—Sathvik remains transparent about the risks. "There is no service connected online, no matter how you see it, that can claim to be 100% secure," he admits. Unocoin's counter-measures focus on moving significant assets to **Cold Storage** and never holding large amounts in single addresses.
More importantly, Unocoin encourages a practice many exchanges discourage: **withdrawing your crypto**. "We allow our customers to withdraw and hold it in their own offline wallets," Sathvik states, emphasizing that self-custody is the ultimate security layer.
The Future Persona: Crypto for the Young and Bold
The data paints a fascinating picture of the Indian crypto investor. The average age is just 28 years. What was once 95% male is now shifting, with female investors making up 25% of the user base. Interestingly, marital status plays a role: Unocoin sees more single investors, likely due to a higher "risk-taking appetite" compared to those with immediate family responsibilities.
Unocoin User Demographics
- Average Age: 28 years old
- First-Time Investors: Over 80% have no prior exposure to equity or gold
- Linguistic Diversity: 35% of users prefer Hindi; 5-10% use South Indian languages
- Female Participation: Grown to 25% of the total user base
Entrepreneurship: Burning the Midnight Oil
For Sathvik, entrepreneurship is the ultimate one-way street. "Once you have done entrepreneurship for a good amount of time, you cannot go back to the 9-to-5 model," he tells Priya. It's the "adrenaline rush" of a new day and the ability to network with diverse minds that makes the 3:00 AM work sessions worth it.
His advice for aspiring founders? **Start before 35**. "When you grow older, you have more responsibility toward children's education and settling in life. Try it when you have the risk-taking ability."
Key Takeaways
- Problem-First Ventures: Unocoin wasn't born from a trend, but from a personal need to avoid 7% transaction fees.
- Averaging the Risk: Tools like crypto-SIPs help users navigate volatility without emotional decision-making.
- Utility vs. Speculation: The future of Bitcoin lies in its use as a currency and asset, verified by its 0% merchant fee advantage.
- Regulatory Resilience: Building in India requires a "marathon mindset" to survive shifting legal frameworks.
As Sathvik Vishwanath continues to lead Unocoin through its second decade, his vision remains unchanged: bringing the efficiency of the blockchain to the billion-strong hearts of India. In a world where the lines between personal and business finance are blurring, Unocoin isn't just an exchange; it's a bridge to a friction-free future.
Traditional Finance vs. Crypto Utility
Traditional (T+2): Delayed settlements, 2% fees, high friction for cross-border movement.
Unocoin (T+1 hour): Near-instant settlement, 0% merchant fees, global accessibility.