Union Budget 2022-23: Government should realize that progressive crypto regulation will lead to an innovative financial ecosystem
Indian Union Budget 2022: New investors need advice on investing in cryptocurrencies
The adoption of crypto in India has increased due to various national and global macroeconomic developments. Millennials and Generation Z are increasingly investing in this new digital asset, with the average age of a crypto investor being below 28. It is therefore no surprise that India was ranked second in the Global Crypto Adoption Index by Chainalysis in August 2021.
India’s demographics are not just young, but also tech-savvy – a foundation laid, in part, by the government’s Digital India initiative, which equips younger generations with tech savvy that prepares them for the future. future for a digital age, characterized by digital assets, blockchain technology and Web 3.0. There is an unparalleled and growing pool of talent interested in working with blockchain technology – the technology that powers crypto assets – and driving innovation in crypto and Web 3.0 in India. It is crucial to tap into and mobilize this emerging workforce.
Despite the growing popularity of crypto assets and blockchain technology, the industry currently exists in a regulatory vacuum. In the absence of regulation, major crypto exchanges today follow self-regulatory practices to ensure customer protection and operate in the best interests of all industry stakeholders. The industry is investing heavily to raise awareness of the asset class, emphasizing the importance of doing your own research before investing. The idea is to build an informed and thriving crypto ecosystem.
We were hoping for regulatory clarity when the Crypto Bill was due to be tabled in the winter session of Parliament. However, we support the government’s desire to take more time to better understand this new space. India is one of the few economies taking steps to standardize best practices to dispel misconceptions around this emerging asset class. A regularized environment born out of a progressive regulatory framework will encourage more Indians to start their crypto investment journey, foster financial inclusion in line with the government’s vision, and encourage new tech startups to create world-class products. in India.
Let’s not miss the Web 3.0 wave
India missed out on the technological revolutions wrought by Web 1.0 and Web 2.0 that spawned giants like Amazon, Google, Microsoft and Facebook. We cannot afford to miss out on the Web 3.0 wave. Discouraging crypto assets will not only wipe out the emerging investment class, but will also greatly impact all crypto and blockchain innovations and set us back as a nation.
Indian entrepreneurs who want to build businesses on the blockchain will need to explore international prospects that will support their ambitions and which may lead to a new wave of brain drain. India has the potential to become the world leader in Web 3.0 which is a net exporter of technology, instead of a net importer. The next Google or Amazon could be built on blockchain and could emerge from India.
Clarity on taxation
Even as we await a complete regulatory framework, from the next budget, we hope for clarity on taxation. This can greatly benefit the growing industry and, therefore, the public purse.
Over the years, crypto has grown into a trillion dollar industry that promotes the benefits of a safe, secure, and transparent digital economy for society as a whole. This development must be recognized. We hope crypto will be ranked as an asset class that has the potential to open many doors for industry-first innovation and global technology leadership.
The author is Chief Business Officer, CoinSwitch Kuber-cryptocurrency exchange. Views are personal.