Tag: bwa

Inclusion Into Startup Initiatives, Risk Mitigating Policies: BWA Lists Web3 Needs for Upcoming Government

India, the largest democracy in the world, is currently undergoing its general election process to choose its leaders for the next four years. Before the chosen leaders take the reins of India’s growth within their commands, the Bharat Web3 Association (BWA) has listed some immediate steps that the upcoming government could consider in order to grow the blockchain-based sector. Formed in 2021, the BWA is touted as India’s largest industry body representing the Web3 firms working around cryptocurrencies, metaverse, blockchain, and NFTs.

Among top suggestions listed by the BWA, it has urged India’s upcoming government to include the up-and-coming Web3 firms under the country’s startup initiatives. Tax benefits, capital gains tax exemptions, access to government funding, and monetary aid through the Startup India Seed Fund Scheme are among provisions that India offers to promising firms that are trying to establish their shops within the country.

The BWA believes that startup initiatives endorsed by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Electronics and Information Technology (MeitY), and the office of the Principal Scientific Advisor (PSA) could greatly benefit the Web3 sector, that is still trying to find solid grounds in India.

“The Web3 sector presents a trillion-dollar opportunity for India, that is home to over 1,000 Web3 startups, accounting for 12 percent of the world’s Web3 developers in 2023 from three percent in 2018. To build on this immense potential, the government should come out with focused skill development programs and sandboxes to enhance skills in blockchain/Web3,” the BWA has said.

All Web3 firms in India fall under the Prevention of Money Laundering Act, 2002 (PMLA) — under which they are mandated to maintain a record of all entities and individuals that are using their platforms. Making new users complete their KYCs is an essential criterion for Web3 service providers for onboarding more accounts onto their respective platforms. Moving forward, the BWA has noted that it is imperative for firms to function under a risk-mitigating policy framework.

The BWA has advocated for Web3 firms to get access to E-KYC and C-KYC–related provisions in India. While Electronic KYC (E-KYC) is a digital version of the KYC process completely non-reliant on physical paperwork, the Central Know Your Customer (C-KYC) is a centralised database of customer information maintained by the Indian government.

“India’s immense Web3 talent is undeniable. The BWA has been working closely with the government to create a conducive environment for the sector, and we hope the next government looks at our request and includes our asks in their immediate action plan to foster the growth of the ecosystem and establish India as the global hub for Web3,” Dilip Chenoy, Chairperson, BWA said in his official statement.

Providing escrow accounts and banking services for owners of Web3 businesses, allowing offsetting of losses, as well as a reduction of the one percent TDS on the transfer of digital assets to 0.01 percent – are other suggestions that the BWA has jotted down for the next elected government to take into consideration.

Earlier in April, the BWA had laid down a bunch of self-regulatory guidelines to streamline the process of token listings for crypto exchanges operating in India. The aim of these rules is to ensure that scam tokens and potentially risky cryptocurrencies do not enter the Indian Web3 ecosystem posing financial risks to the investor and trader communities here.

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BWA Lays Down Self-Regulatory Guidelines on Token Listings for Indian Crypto Exchanges

Joining the Indian government in regulating the crypto sector and making it safe for engagement, the Bharat Web3 Association (BWA) has laid down some rules for service providers in the crypto sector to adhere to. The Web3 industry group has released guidelines for crypto exchanges to follow while considering the listing of new altcoins on their platforms. The aim is to reduce the risk of scam tokens entering India’s crypto ecosystem that may cause financial damage to the investor and trader communities.

The self-regulatory guidelines are based on the PEC framework, that focusses on investor protection, market efficiency as well as credibility and safeguards. A total of 36 Web3 firms that are BWA members have provided suggestions for the formulation of these guidelines. The BWA has bifurcated these guidelines into two parts – Essential Metrics and Indexed Metrics.

Under Essential Metrics, the guidelines suggest that all crypto exchanges must become the primary screening process. To do so, the exchanges have been directed to establish minimum standards to review tokens that are in the pipeline to be listed for public engagement.

Exchanges have been asked to check if the tokens up for listing or the project linked to them – fall under India’s regulatory guidelines and are not linked to potentially dangerous projects. On the technological aspect, the exchanges have been asked to feasibly collect and analyse all information required around these tokens to comply with relevant laws and utilise blockchain analytics tools through third party experts/vendors.

“These guidelines reflect our commitment to ensuring a fair, transparent, and secure ecosystem for virtual digital assets (VDAs). By standardising the listing process, we aim to build awareness amongst stakeholders around token listing, enhance market confidence, protect investors, and foster sustainable growth in the Web3 domain,” Dilip Chenoy, Chairman of BWA said in a prepared statement.

As part of the second classification of BWA’s guidelines – or Indexed Metrics – exchanges have been asked to create their own filtering framework for token listing. Under this process, the exchanges will need to check the white papers, project roadmaps, and technological aspects linked to newer tokens. In order to avoid debacles like the FTX collapse, exchanges have also been suggested to check the liquidity measured by order book across major international platforms.

In addition, crypto exchanges operating in India have been asked to officially announce the date prior to the listing of tokens – making the community aware officially.

“VDA platforms should have operational frameworks and protocols as part of the token listing process once a token passes all checks These may include comprehensive, voluntary disclosures, safeguarding against insider trading, technical assessments before listing, as well as thorough staging and testing before public offering,” BWA noted.

In India, the government has gradually been deploying regulations to safeguard the crypto sector against financial risks. In the most recent development, all crypto exchanges operating within the Indian territory have been mandated to register with the Financial Intelligence Unit (FIU).

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Bharat Web3 Association Teams Up With Japan’s JADA to Boost Sector Growth

The Web3 sector is witnessing a rapid expansion globally, as clusters of countries are collectively (as well as independently) setting guidelines and legal frameworks to regulate the sector. In a bid to explore ways to grow the Web3 ecosystem in Asia, Web3 support groups from India and Japan have decided to team up to boost growth in the sector. India’s Bharat Web3 Association (BWA) has struck a partnership deal with the Japan ANICANA Dealers Association (JADA) will now work together to foray deeper into Web3-related research and development.

This week, the BWA and the JADA signed a memorandum of understanding (MoU). Under this agreement, the organisations will embark on joint Web3 initiatives around cryptocurrencies, metaverse, non-fungible tokens (NFTs), advanced gaming ecosystems, and blockchains.

“We hope to exchange insights on use cases, manage risks through regulatory frameworks, and develop policies while sharing compliance best practices,” Dilip Chenoy, Chairperson, Bharat Web3 Association said in a prepared statement.

Both, India and Japan, have already been making strides in the Web3 arena. As per a recent report by Hashed Emergent, India has emerged as a lucrative location for Web3 activities. With over a thousand startups already having been founded in the sector, India currently holds 12 percent of global blockchain developers. The report also noted that India has claimed the top spot for on-chain adoption in 2023, ahead of 150 other countries and boasting over 35 million trading accounts on top Indian exchanges.

Web3 technology in Japan is also expected to grow, and prime minister Fumio Kishida is said to have adopted a friendly stance towards Web3 technology. Last year, the Japanese premier reportedly stated he would help to ffoster the technology with more Web3 promotion policies.

The areas of blockchain gaming and blockchain use cases are seen as major propellers driving the Web3 revolution in Asia, according to market experts.

Bitget, a crypto exchange, launched a $100 million fund pool for Web3 growth and development in April 2023. Other firms like Alibaba Cloud and Near Foundation are also working on growing these technologies in Asia.

With several industry players betting big on Web3 expansion in Asia, industry bodies like the BWA and the JADA are aiming to boost research and development in the Web3 sector. “Our goal is to conduct research, surveys, and provide development support for businesses and products, contributing to the healthy development of the industry and the protection of users. We place great importance on establishing and guiding self-regulation, rules, and guidelines necessary to ensure proper operation,” said Keiko Tanaka, Chairperson, Japan ANICANA Dealers Association in a prepared statement.

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Bharat Web3 Association Signs MoU with Maharashtra State Skills University to Grow Ecosystem

As India braces itself to get its crypto laws hopefully in December, several states in the country are taking brisk steps to establish themselves as lucrative locations for Web3 entrants to set their shops. Recently, India’s crypto-focussed group of industry players called the Bharat Web3 Association (BWA) has signed an MoU with the Maharashtra State Skills University (MSSU). The aim of this partnership is to make Maharashtra ready to host the Web3 ecosystem comprising of players in the sectors of cryptocurrency, NFTs, and the metaverse among others.

The announcement of this MoU was made on Wednesday, November 15. Moving forward, both parties involved will engage in initiatives around skill enhancement, education, and research in the Web3 arena while making young Indians ready to be employed in the sector.

“This Memorandum of Understanding reflects our shared commitment to advancing the Web3 ecosystem in India through a fusion of academic excellence and industry acumen. As we embark on this journey, the Bharat Web3 Association is excited about the possibilities that lie ahead, envisioning a future where skilled talent thrives and contributes to our nation’s digital economy,” said Dilip Chenoy, BWA Chairperson commenting on the development.

The BWA has members from several crypto players like CoinSwitch and CoinDCX among other. Formed in December 2021, the organisation aims to bridge the gap between the crypto industry as well as the policymakers of the country.

In a 2022 report, Nasscom had said that 11 percent of the world’s Web3 talent, especially developers, resides in India. Hence, for Mumbai-based MSSU, it seems only natural to show interest in training students in Web3 branches that may get them jobs sooner that other competitive tech fields.

The government of Maharashtra has also meanwhile been trying to test the Web3 waters. It has already been trying to stitch NFTs into its health data storage using the Algorand blockchain. Last year, the revenue department of Maharashtra also decided to move all records to blockchain to make sure they are tamper-proof.

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