At the Game Developers Conference, Telangana’s Principal Secretary for IT Jayesh Ranjan announced a partnership with the Reserve Bank of India (RBI) on the Web 3.0 Regulatory Sandbox.
Telangana’s Principal Secretary for Information Technology proudly announced the partnership with the Reserve Bank of India (RBI) on Web3 Regulatory Sandbox at the India Game Developer Conference, according to a tweet from the Emerging Technologies Government of Telangana.
Telangana’s Principal Secretary IT at India Game Developer Conference with great pleasure announced the partnership with the Reserve Bank of India (RBI) on Web3 Regulatory Sandbox. #regulation#policymaking#web3#sandboxpic.twitter.com/KF44J81hnk
— Emerging Technologies Govt. of Telangana (@EmergingTechTS) November 5, 2022
As stated in August at a launch event for the India Blockchain Forum (IBF), the sandbox intends to support Web 3.0 startups in their innovation with blockchain, the metaverse, non-fungible tokens (NFTs), and other related technologies. According to reports, the Web 3.0 Regulatory Sandbox is a first for any Indian state.
The India Blockchain Forum has established special interest groups (SIGs) in the metaverse, policy framework, and other areas for efficient blockchain deployment and has more than 40 influential members. The forum participants are leaders in the enterprise use of blockchain and Web3.0 and are specialists in policy writing, NFTs, the metaverse, and cybersecurity.
Ranjan said that the sandbox would help create meaningful dialogue amongst all the stakeholders, including regulators, startups, and policymakers, to arrive at a nuanced approach to evolving a practical web3 framework.
“We saw during a recent interaction with a VC that Indian startups are going away from India to Dubai and other places where the regulation is clear about such issues. We are engaged with policymakers and other regulators and are here to work with Indian Web 3.0 startups for promoting innovation,” Ranjan said.
He added that shortlisted startups enrolled in the sandbox will be provided with knowledge about regulatory laws so that the products they are building do not jump an existing regulation.
Telangana has established a dedicated government wing for these emerging technologies, with the objectives of driving the adoption in the government department and building a robust ecosystem in the state.
In 2019, the state launched Telangana’s Blockchain Framework. Moreover, it signed strategic blockchain-focused partnerships with BitFury, the Indian School of Business, and GBBC (Global Blockchain Business Council).
In April, the Telangana government launched its ‘SpaceTech Framework’ to support private industry participation in the space tech sector. The framework’s vision is to establish the state as a “globally recognized one-stop destination” in the industry. The event was held on the metaverse, and it was said to be the country’s first-ever official event hosted in the virtual-reality space.
India’s approach to blockchain startups and regulation
Even as the lack of regulatory clarity has been a concern among blockchain startups in India, the country has not stopped innovations in the Web3 space.
A report from the National Association of Software and Service Companies (NASSCOM) released in October cited India’s lack of regulatory clarity as the reason behind the country’s shrinking Web3 talent pool.
The report pointed out that India has some of the strictest regulations for digital assets in the world, charging a 30% tax on the profits made by traders and mulling over a blanket ban in the past.
Despite the regulatory challenges, the report says that the country is uniquely positioned to take advantage of Web3 in the coming years as the ecosystem is advancing rapidly in India and that Indian companies are poised to build decentralized apps.
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