India Web3 Association lists development needs of the sector for the next government

India, the world’s largest democracy, is currently going through the general election process to choose its leaders for the next four years. Before elected leaders take over the reins of India’s development, the India Web3 Association (BWA) has listed some immediate steps that the incoming government can consider to develop the blockchain-based sector. Formed in 2021, BWA is known as India’s largest industry body representing web3 firms working around cryptocurrencies, metaverse, blockchain and NFTs.

Among the top suggestions listed by BWA, it has urged the upcoming government of India to include emerging Web3 firms under the country’s startup initiative. Tax benefits, capital gains tax exemption, access to government funding and monetary support through the Startup India Seed Fund Scheme are among the provisions that India offers to promising firms that are trying to set up their shops within the country. .

BWA believes that the Web3 sector can significantly benefit from startup initiatives supported by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Electronics and Information Technology (MeitY) and Office of the Principal Scientific Advisor (PSA). Still trying to find a solid base in India.

“The Web3 sector presents a trillion-dollar opportunity for India, home to over 1,000 Web3 startups, to grow from three percent in 2018 to 12 percent of the world’s Web3 developers in 2023. To build this huge capacity, the government should come forward with focused skill development programs and sandboxes to enhance skills in Blockchain/Web3,” BWA has said.

All Web3 companies in India are covered under the Prevention of Money Laundering Act, 2002 (PMLA) – under which they are mandated to maintain records of all entities and individuals who are using their platform. It is an essential criterion for Web3 service providers to require new users to complete their KYC to add more accounts on their respective platforms. Going forward, BWA notes that it is imperative for companies to operate within a risk-mitigating policy framework.

BWA has advocated for Web3 firms to gain access to e-KYC and C-KYC-related provisions in India. While electronic KYC (e-KYC) is a digital version of the KYC process that does not rely entirely on physical paperwork, Central Know Your Customer (C-KYC) is a centralized database of customer information maintained by the Government of India.

“India’s vast Web3 talent is undeniable. BWA is working closely with the government to create a conducive environment for this sector, and we hope that the next government will consider our request and support us in promoting the development of the ecosystem and positioning India on the global stage. Will include the demands in its immediate action plan. Hub for Web3,” BWA chairperson Dilip Chenoy said in its official statement.

Providing escrow accounts and banking services for owners of Web3 businesses, offsetting losses, as well as reducing the one per cent TDS on transfer of digital assets to 0.01 per cent – ​​are other suggestions the BWA has written for the government to consider in the next election. .

Earlier in April, BWA had laid down a set of self-regulatory guidelines to streamline the process of token listing for crypto exchanges operating in India. These rules are aimed at ensuring that scam tokens and potentially risky cryptocurrencies do not enter the Indian Web3 ecosystem, thereby putting the investor and trader communities here at financial risk.