The lower house of the Indian Parliament, Lok Sabha, conducted a discussion on the significance of the web3 and blockchain sector in India on December 6.
Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, highlighted the importance of web3 and blockchain technologies in shaping India’s digital future. In response to key queries, Chandrasekhar outlined the government’s support for web3 startups, underscoring the importance of fostering emerging technologies and creating awareness around web3 in the country.
Indian Government Warms Up to Web3
In response to the parliamentary discussion, Om Malviya, the President at Tezos India, an organization promoting blockchain adoption, praised the growing collaboration between web3 startups and the Indian government.
Malviya highlighted India as a fertile ground for web3 startups, with entrepreneurs increasingly exploring blockchain, cryptocurrencies, and decentralized technologies. He expressed optimism about the transformative potential of this vibrant ecosystem in contributing to India’s economic growth.
Commending government initiatives such as Algobharat, Regulatory Sandbox, and the creation of a startup-friendly environment, Malviya expects these efforts to generate employment opportunities and attract foreign investment, fostering a thriving web3 startup ecosystem in India.
He remains optimistic that India will emerge as a global leader in blockchain innovation.
India Yet to Adopt Crypto Regulations
The regulatory environment for cryptocurrencies in India is currently in a gray area due to a lack of clarity. Despite being among the top countries in terms of crypto adoption, as reported by Chainalysis earlier this year, the Indian government has yet to provide clear regulations for the crypto sector. Crypto traders in India are also contending with high tax rates, including a 30% income tax on crypto earnings and a direct 1% GST on crypto transactions.
Following India’s recent Presidency of the G20, where crypto regulations were a major topic, there is an expectation that Indian crypto firms may see clearer regulations in the coming year.
