Despite being in the functions for over two years, India’s crypto rules and regs are barely scratching the surface about what the third generation of the Internet, or web3, will need. Experts believe that India’s policymakers should follow global examples set by nations like the United States (US) and the European Union (EU) to successfully regulate cryptocurrencies and web3 initiatives in the country.
According to Ajeet Khurana, a well-known crypto advisor, three major paths have been explored globally. During a Twitter Spaces chat moderated by Business Insider India, Khurana stated that enacting a comprehensive crypto bill may not be the only option available to the government. He also stated that India has already followed the example of nations such as the United States, Australia, the United Kingdom, Canada, and Singapore in modifying existing regulations to incorporate cryptocurrencies.
Rather than declaring a full-fledged crypto bill, which has been in the works for the past year or so, finance minister Nirmala Sitharaman brought crypto trading under the ambit of existing taxation rules in India in the Union Budget 2022 last month.
So, if we could tweak our SEBI Act, RBI Act, FEMA, and a few others…frankly, we are a fully regulated country, and I think that may be the best way to go because large economies around the world have done that.
– Ajeet Khurana, Crypto Expert, told Business Insider
Recognizing Web 3.0’s Potential
Aritra Sarkhel, Director of Public Policy at WazirX, the country’s main crypto exchange, noted that several government authorities are still unsure how they would deal with the business. He emphasized that different government agencies have different versions, and the discussion has shifted from crypto to non-fungible tokens (NFTs). Legislators, on the other hand, appear to have overlooked web3’s full breadth.
According to Tamar Menteshashvili, who manages ecosystem growth at Solana Labs, which administers the Solana platform, several web3 startup owners from India have lately relocated to Dubai, which is a “strong warning” that “something isn’t going as smoothly as it should.”
India is one of the world’s fastest-growing internet consumer markets, with one of the most vibrant pools of start-ups and developers. Web 3.0 is the next internet revolution that has been quietly gathering traction. In fact, according to research by the US India Strategic Partnership Forum (USISPF) and Cross Tower, Web 3.0 and digital assets might add $1.1 trillion to India’s GDP over the next decade.
Aritra Sarkhel stated that the industry needs regulatory clarity so that 18-19-year-old entrepreneurs do not become confused and flee the nation to escape future consequences. “Essentially, you don’t want another brain drain to occur. “Let’s develop together,” he said during the Twitter Spaces session to Business Insider.