The year started off with a big bang, as the crypto ecosystem cheered the approval of 11 Bitcoin spot exchange traded funds (ETFS) by the U.S. Securities and Exchange Commission on January 10. The newly approved ETFs attracted over $1.9 billion in capital inflow in the first three days of listing, signaling a strong investor interest in the asset. Long time crypto backers are still incredulous seeing old-school financial institutions like BlackRock and Fidelity Investments offering BTC ETF to its clients.
This milestone represents a significant step forward in mainstreaming of crypto. While this approval is cause for celebration, it also prompts us to consider the broader implications. We at CoinSwitch view this moment not as an end in itself, but as a new chapter in the evolution of crypto. Hopefully, this prompts Indian regulators to create an enabling environment for crypto in the country.
Why India needs crypto
Around the world momentum is building for responsible and regulated use of crypto assets. Today, over 80% of G20 and major financial financial hubs are providing increasing regulatory clarity on crypto. India is no different.
India has 12% share of crypto developers while the UK, Germany and France have about 5%. There are 1000+ Web3 startups in India, as per reports from Electric Capital and Hashed Emergent. Collectively, they have attracted over $2.5 billion in funding over the last few years. India added the highest number (~3.5 million) of open source developers in 2023. India must seize this opportunity to put in place a robust regulatory framework for Web3/VDAs and rationalize crypto taxation in 2024.
The Interim Budget presented on February 1st, ahead of the general elections, did not alter the direct and indirect tax rates. At CoinSwitch we will continue to engage with the full range of government stakeholders on these issues. A snapshot of our wishlist across tax, compliance and policy domains that we advocate for can be found here—a recommended read as a full Budget is to be tabled later this summer by a newly-elected government.
A positive step to protect consumers
Few weeks ago, the Bharat Web3 Association (BWA), of which CoinSwitch is a founding member, released consumer protection guidelines for the VDA sector. The release of these comprehensive guidelines is a testament to our commitment to fostering responsible practices, and building confidence among consumers, investors, and stakeholders alike.
On the product front, we have been making a series of fixes and tweaks to help ensure that you always enjoy the best experience. There are quite a few things that we’re cooking up for our true blue crypto enthusiasts, and we’ll be sharing our progress with you soon!
Till then, keep watching this space for more updates.
#WAGMI
Team CoinSwitch
