India’s lack of regulatory clarity on crypto and Web 3.0 is a driving force of critical human capital flight, according to a new report by the non-profit industry association, the National Association of Software and Service Companies (Nasscom).
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Fast facts
- “Clarity on policy will unleash multiple initiatives and India can serve as the world’s sandbox in several public services and governance use cases of blockchain,” Nasscom said in its report.
- The industry body also called for the Indian government to initiate a global agreement for the definition of virtual digital assets.
- India currently collects a 30% flat tax on crypto income and a 1% tax deducted at the source for transactions above 10,000 Indian rupees (US$120) with no provision to offset losses.
- About 11% of the world’s Web3 talent is in India, making it the region with the third biggest talent pool in the sector, according to Nasscom.
- More than 450 Web3 startups in India have collectively raised US$1.3 billion in investments over the last two years, dating back from April this year, Nasscom said.
See related article: India’s finance minister sees 46% growth in blockchain technology use in next few years