India is emerging as a vibrant hub for Web3 startups, thanks to its abundant pool of skilled developers, according to the Bharat Web3 Association (BWA). Established in November last year, the BWA aims to bridge the gap between industry players and the government in the crypto advocacy space. Over the past nine months, the BWA has observed a growing interest among Indians in experimenting with Decentralised Finance (DeFi) due to its almost tax-free and cost-effective alternatives to traditional banking services.
DeFi, also known as Decentralised Finance, enables financial products to operate on a public blockchain network without the need for central banks or intermediaries. Individuals who are looking for alternative investment options to traditional banks can consider investing in DeFi protocols.
Indians are particularly attracted to the DeFi sector due to the increasing number of DeFi applications and use cases, ranging from loans to exchanges. According to Finder.com, India has the highest value of DeFi transactions for both individuals and retailers. One contributing factor to this trend is the significant volume of remittances sent to India from overseas citizens, which can be facilitated faster and more cost-effectively through cryptocurrencies.
Dilip Chenoy, Chairman of BWA, commented, “India is among the fastest global adopters of DeFi, which can enhance financial inclusion by providing expanded access to credit for the MSME sector and those who are unable to access credit from traditional banks. The quality of startups being founded in India is exceptional.”
Chenoy further expressed his optimism for a boom in Web3 initiatives from India once the country establishes its crypto legislation framework. Currently, as the president of the G20 nations, India is working on developing a set of global crypto regulations.
In an August 1st post, India shared a presidency note on crypto, outlining the current progress on crypto regulation. The note mentions that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) are expected to jointly present a paper on their suggestions for crypto rules by the end of this month. The paper will highlight the potential macro-financial implications of crypto and the risks it poses to emerging markets and developing economies. Additionally, it will emphasize the importance of spreading awareness about crypto to ensure individuals are aware of the advantages and disadvantages.
As the president of the G20 group, India has submitted a similar note with its ideas, suggestions, and concerns regarding crypto. Dilip Chenoy emphasized the need for a coordinated regulatory mechanism for virtual digital assets (VDAs) due to their cross-jurisdictional nature. He also noted that India has taken steps to include Web3 within existing frameworks, such as income tax regulations for VDAs, compliance guidelines for VDA service providers, and the recognition of VDA service providers under the Prevention of Money Laundering Act (PMLA).
Chenoy concluded by stating that India’s G20 presidency, which concludes in December this year, offers an opportunity to establish detailed and effective global crypto regulations. He believes that advancements in Web3, such as asset tokenization and the eRupee CBDC, will further encourage Indians to explore the sector in areas such as real estate, art, supply chain, and gaming.
In related news, the Telangana government in India recently announced the launch of its Asset Tokenization Standard Framework, providing standardized rules and guidelines for asset tokenization.
Analyzing India’s internal response to the safer VDA sector, the BWA chief expressed confidence in the G20 nations under India’s leadership in crafting comprehensive crypto regulations.
[Note: This article contains affiliate links. Please refer to our ethics statement for more information.]
[Source: Gadgets 360, KoinX]
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
