Crypto regulations and the road ahead for blockchain in India

From the great crypto bull run of 2017 to the tremendous crash of 2018, the nascent blockchain ecosystem has seen a lot in a short span. The evolution from protocol stage research work to the launching of ICOs has all been in the anticipation of having a large consumer base which uses and builds on the blockchain. The year 2019 will be the one when blockchain evolves from being a mere buzzword to something useful and tangible. We will finally see projects bearing fruit and new applications being realised just as the number of blockchain developers continues to surge.

India has always been a tech hub with a vast pool of developers. Unfortunately, this has never translated into successful entrepreneurship ventures as we have somehow managed to drive innovation abroad. According to a market analysis carried out by Dappros, a London-based blockchain consulting firm, India is home to the second highest number of blockchain developers in the world, close to 19,700 developers. This puts us at an advantage over other countries in terms of developing blockchain applications. The right policies and infrastructure could foray India into the list of the world’s leaders in blockchain by 2023.

Blockchained India has always worked towards building a thriving ecosystem for people to learn, grow and connect with other blockchain practitioners. While the world was working on creating new blockchain based protocols and infrastructure, the Indian blockchain community was still in the learning phase. Now that the world has moved on to an application based approach to blockchain with a focus on building dapps, the Indian developer community must capitalize on it. Having experienced the zeal of the Indian blockchain ecosystem firsthand, we at Blockchained India recognize the needs of our developers and feel that our community should not miss the chance to seize this opportunity. India has the potential to benefit from jobs, capital investment and local innovation in the blockchain universe if given the right direction and motivation.

With this vision, we’re proud to launch the India Dapp Fest from 11–15th June 2019 at Bangalore, a one of its kind event with the entire inner circle of the Indian Blockchain Ecosystem as well as top global DLT visionaries and influencers. It will be a five-day festival packed with workshops, panel discussions, talks, hackathons and networking events along with an experienced lineup of speakers. We will be celebrating the spirit of decentralisation and the amazing opportunities this ecosystem has to offer to distributed app creators. It will be a platform to learn, connect, share and go back with a fervour to become a part of the blockchain revolution. Save your excitement as we reveal our star speakers and agendas in subsequent posts!

While we are gearing up for one of the biggest events for the blockchain space in India, we cannot ignore the ecosystem’s immediate needs. We realise that to make India an important blockchain hub, along with skill development and knowledge sharing, we need encouraging policies and infrastructural support. To bring together the entire crypto ecosystem and give them a platform to express their opinions on crypto regulations in India, Blockchained India is organising a roadshow in March across the country. We will be having open town halls in Delhi, Mumbai, Bangalore and Hyderabad starting March 2nd with the aim of hearing the voices of the crypto community and making the government listen.

Nischal Shetty, founder and CEO of WazirX, a cryptocurrency exchange, has taken on the herculean task of preventing the loss of the biggest opportunity of the decade macroeconomically for the country and its aspiring entrepreneurs. He started a campaign a couple of months ago on Twitter with #IndiaWantsCrypto to voice the opinion of the industry about crypto regulation and bring it to the notice of the regulators. He believes that the government should start involving the appropriate stakeholders like startups, developers and traders in the space in the regulation-making process. The key is not to rush regulations but allow trading until they’re ready with the right framework, one that is positive for the blockchain ecosystem. He says, “A major implication of the RBI crypto ban was the dying out of innovation in the space. Companies were shut down with major job losses as the investments dropped to nil.” He believes an unsupportive regulatory environment will lead to brain drain and companies setting up shop abroad.

“Shutting down an entire industry is a reaction disproportionate to the risks involved in trading of digital assets. Meaningful consultation exercises with stakeholders would have resulted in a more informed approach toward regulation. Alternatives were available to better manage these risks, but these were not explored by the government”, says Anirudh Rastogi, founder of Ikagai Law. The Supreme Court hearing of 25th February, Anirudh informs, was adjourned for four weeks and the court granted a last opportunity to the government within this period to complete deliberations on the issue and make its submissions in the court in the next hearing.

If the government yet again fails to suggest anything except keeping the blanket ban, especially as a result of a lack of enthusiasm, the crypto community should not stay silent. We will get the ecosystem’s opinions, carefully understood through open town halls organised all across the country within the four weeks given by the Supreme Court and ensure they reach the right ears. We can no longer avoid this conversation. This issue transcends us all. The time is long overdue to encourage the Indian regulators and policymakers to work towards crypto regulation in India and bring optimism to the ecosystem, making it conducive for growth and innovation. These are crucial and exciting times for the blockchain space in India and now is the time to act! Join us as we come together to brainstorm solutions and discuss the right way to move forward.

Register here to contribute and voice your opinion at the nearest Open Town Hall!