India is currently in a crucial phase in the global crypto market, aiming to balance innovation and safety. Inspired by other countries, it’s focusing on how to regulate virtual digital assets (VDAs). A ‘HODL’ strategy could be adopted, emphasizing responsible regulation to encourage growth and innovation in the sector.
The global run to regulate cryptocurrency assets provides India with a unique opportunity to lead this space. By implementing a comprehensive regulatory framework, India can position itself as a global leader in responsible cryptocurrency asset use.
India’s VDA and Web3 landscape is full of potential. With global developments, India should seize the opportunity. According to the ‘India’s Web3 Landscape 2023’ report by Hashed Emergent and partners, India has over 1,000 startups and 12% of global Web3 developers, making it one of the largest ecosystems worldwide.
Recently, at the G20 Summit, India demonstrated its leadership by advocating for global regulatory standards. The nation is calling for collaborative efforts to address the international nature of crypto assets and handle their broader financial implications.
The nation is closely observing successful regulatory models like the EU’s MiCA and the UK’s planned crypto legislation, paving the way for a well-defined domestic framework.
The EU is gearing up for the implementation of the Markets in Crypto-assets (MiCA) regulation, set to come into effect this year.
The Dubai International Financial Centre (DIFC), a prominent global financial hub, has recently introduced the world’s first Digital Assets Law. Positioned as the leading financial center in the Middle East, Africa, and South Asia (MEASA) region, this move underlines its commitment to embracing digital finance.
Meanwhile, the UK government is making waves with its ambition to become a global leader in Web3 as it plans to regulate crypto assets through formal legislation in 2024.
At the beginning of 2024, when the US SEC gave the green light to 11 ETFs, making it easier for investors to tap into Bitcoin directly through regulated channels.
Following the announcement, Bitcoin soared past the $70,000 mark for the first time, signaling a surge of interest and confidence in the cryptocurrency.
This decision not only provides investors with a familiar and regulated way to access Bitcoin but also highlights the growing integration of digital assets into mainstream finance.
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