The Bharat Web3 Association (BWA) shared an analytical observation that India is a lucrative hub for Web3 project startups due to its large developer talent pool. India’s own cryptocurrency advocacy group, BWA, was launched last November to bridge the communication gap between industry players and the government. Over the past nine months, BWA has observed that Indians may be stepping up their experiments with DeFi, as it offers an almost tax-free, cheap alternative to traditional centralized banking services.
DeFi, or decentralized finance, allows financial products to appear on public blockchain networks without the supervision of central banks or intermediaries. People who want to park their money somewhere other than banks can consider investing in DeFi protocols.
Indians are particularly keen to explore the DeFi space, as the number and use cases of DeFi applications, from lending to exchanges, are exploding.according to Finder.comThe value of DeFi transactions by individuals and retailers is highest in India. One factor contributing to this trend is the high volume of remittances repatriated to India by citizens working overseas, which can be sent more quickly and cost-effectively through cryptocurrencies.
“India has one of the fastest adoption rates of DeFi in the world, and it can boost financial inclusion by expanding the MSME sector and access to credit for those who cannot get credit from banks. The quality of Indian startups is top-notch.” BWA chairman Dilip Chenoy told Gadgets 360.
Chenoy pointed out that once the country has a framework for encryption laws, India’s Web3 initiatives will flourish.
Currently, India, as the chairman of the G20, is developing a set of cryptocurrency rules applicable globally.
August 1, National release Presidential Note on Cryptocurrencies, providing an update on the status of legal work on cryptocurrencies.
Breaking:rotating_light:: India:flag-in: as G20 Head of State, is spearheading harmonized global regulations #cryptocurrency assets.
The presidential note shared below has the potential to redefine encryption regulations around the world. :fire:
Here’s everything you need to know about :thread::point_down: pic.twitter.com/OxL8JzFqsy
— KoinX (@KoinXOfficial) August 3, 2023
According to the note, the International Monetary Fund (IMF) and the Financial Stability Board (FSB) are expected to jointly submit a comprehensive paper on their cryptocurrency rule proposals by the end of this month.
This article will point to the possible impact of cryptocurrencies on macro-financial impacts, while outlining the risks of cryptocurrencies to emerging market and developing economies. Additionally, the paper is also expected to highlight ways to spread cryptocurrency awareness so that everyone who chooses to engage with digital assets understands its pros and cons.
India has submitted a similar note to the G20 containing its thoughts, proposals and concerns about cryptocurrencies, as Chairman Ajay Seth, a senior finance official, said last month.
“The nature of virtual digital assets (VDA) is cross-jurisdictional, so it is necessary to establish a coordinated regulatory mechanism for such assets, rather than individual countries taking different positions. The regulatory environment for virtual digital assets is constantly evolving,” Chernow Yi said.
He further added that while there are no specific regulations in India to regulate Web3, the industry has been explicitly brought under certain regulations.
These include the VDA income tax framework, the Computer Emergency Response Team of India (CERT-IN) guidelines to ensure compliance of VDA service providers, ASCI guidelines for responsible advertising and the latest inclusion of VDA service providers in the Prevention of Money Laundering Act (PMLA) to recognize them as reporting entity.
“These developments can show that India is moving in the right direction and regulators understand the risks,” Chenoy added.
India’s G20 presidency will end in December this year, and the first draft of global cryptocurrency rules is expected to be released around this time.
Meanwhile, Chenoy said that Web3 elements such as asset tokenization and eRupee CBDC may make it easier for Indians to enter the Web3 space in the future through real estate, art, supply chain and gaming.
Recently, the Telangana state government in India announced the launch of the asset tokenization standard framework, which provides a common set of rules and guidelines for asset tokenization.
Under his leadership, the G20 countries can formulate detailed and correct rules for cryptocurrencies, the head of the BWA said after analyzing India’s internal response to boosting security in the VDA industry.
Svlook
