The Bharat Web3 Association, a leading body representing Web3 businesses in India, has put forth a series of proposals aimed at integrating the Web3 and cryptocurrency sectors into the Indian framework. As regulations worldwide are evolving to maintain fairness and balance in the commercial landscape, these recommendations come at a crucial juncture, urging the upcoming government to consider policies supportive of these burgeoning industries.

A key appeal from the BWA is for the government to acknowledge and integrate the Web3 sector into startup ventures supported by entities like the Principal Scientific Advisor office, Ministry of Electronics and Information Technology, and Department for Promotion of Industry and Internal Trade, among others. Aligning with the global trend, India requires a clear, coordinated regulatory framework on digital assets to mitigate risks and foster innovation.

Highlighting the need for operational efficiency, BWA emphasizes that over 80% of G20 nations and financial hubs have established regulatory clarity regarding cryptocurrency assets. To facilitate smoother operations, the association advocates for Virtual Asset Service Providers (VASPs) to have access to financial services and escrow accounts, promoting a conducive environment for the growth of the Web3 ecosystem.

With a burgeoning community of over a thousand Web3 companies, India boasts one of the largest ecosystems in the world, witnessing a significant growth in Web3 developers' share from 3% to 12% between 2018 and 2023. To harness this immense potential, the government is encouraged to implement educational programs aimed at enhancing blockchain and web3 literacy across the nation.

In fostering innovation and providing support to startups in the blockchain and cryptocurrency sectors, the establishment of regulatory sandboxes in India is proposed by BWA, offering a controlled environment for experimentation and growth within these evolving industries.