The adoption of crypto in India is increasing due to various domestic and global macroeconomic developments. Millennials and Gen Z are increasing their investment in this new digital asset, with the average age of crypto investors under 28. Therefore, it is not surprising that India was ranked second in the Global Crypto Adoption Index of Chainalysis in August 2021.
India’s demographic is not only young, but also tech-savvy. It is a foundation partially laid by the government’s Digital India initiative, with the technical know-how to prepare the younger generation for the digital age with digital assets, blockchain technology, and Web3.0. An unparalleled pool of talent is growing interested in driving innovation in crypto and Web3.0 in India using blockchain technology. It is important to utilize and engage this new workforce.
Regulatory vacuum
Despite the growing popularity of crypto assets and blockchain technology, the industry is currently in a regulatory gap. In the absence of regulation, today’s major crypto exchanges follow self-regulatory practices to ensure customer protection and act in the best interests of all industry players. The industry is investing heavily to raise awareness of its asset class, with an emphasis on the importance of conducting its own research before investing. The idea is to build a thriving informed crypto ecosystem.
We wanted regulatory clarity when the crypto bill was set to be submitted during the winter session of the parliament. But we support the government’s desire to spend more time understanding this new space. India is one of the few economies taking steps to standardize best practices to address the misconceptions surrounding this new asset class. The regulated environment created by the progressive regulatory framework will allow more Indians to embark on a crypto investment journey, facilitate financial inclusion in line with the government’s vision, and encourage new technology startups to build world-class products from India.
Let’s not miss out on Web 3.0 wave
India missed the technological revolution of Web 1.0 and Web 2.0 that spawned giants such as Amazon, Google, Microsoft and Facebook. We can’t afford to miss the wave of Web 3.0. The abandonment of crypto assets will not only destroy the emerging investor class, it will also have a huge impact on all innovations in crypto and blockchain and set us back as a nation.
Indian entrepreneurs looking to build a blockchain company must explore an international perspective that supports their ambitions and could lead to another brain drain. India has the potential to become a world leader in Web 3.0, as India is a net technology exporter and not a net importer. The next Google or Amazon might be built on the blockchain and may emerge from India.
Clarity on taxation
We look forward to clarity on taxation while awaiting a comprehensive regulatory framework in the next budget. This can be a huge boon to the growing industry and the treasury.
Over the years, crypto has grown into a $ 1 trillion industry that promotes the benefits of a secure and transparent digital economy for society as a whole. This development must be approved. We hope that cryptocurrencies will be ranked as an asset class that has the potential to open many doors to industry-leading innovation and global technology leadership.
