The Union government is preparing to introduce a bill in the winter session of Parliament to regulate cryptocurrency in India. What does this mean for an asset class? Officials suggest that regulations supporting cryptocurrency could generate $1 billion in tax revenue annually for the government.
To decipher what crypto regulations mean and discuss the Metaverse and the hype surrounding Metaverse tokens, CNBC-TV18 interviewed Aditya Singh, Co-Founder, Crypto India, and Nischal Shetty, CEO of Wazir X.
In the Metaverse and metaverse Shetty said: “The mental model for understanding the metaverse is like this – in today’s disconnected world you have cities, land, cars and the like. The reason people want to buy them is because they have value. You can sell them as an investment or use them for different activities. Now, that is what is being replicated in the internet world.”
He added, “So far, what you’ve had is, let’s say, you’re playing a game, you’re playing for leisure, there’s not much to it, and you’re wasting time. Now, what happens is, when you play a game, you’re kind of building a character — you can sell This character is tomorrow. If you buy digital land within a game, you can sell that land in the game, or you can move that land to a platform where you can sell it away for cryptocurrency and eventually turn it into real money.”
So, what happens is that the real world that exists now gets a chance to replicate on the internet world and that’s what the metaverse is – it’s all about ownership. And this is where Non-Foldable Tokens (NFTs) make it possible. “Because you can have unique personalities and unique clients, you can own the digital world. That’s what the metaverse is. It’s still evolving and everyone wants to get in because they realize that’s the early movement advantage they can get,” Shetty explained.
Regarding cryptocurrency regulations, Shetty said, as an industry, they have been pushing for regulations for a variety of reasons, chief among them being the ability to build a clean industry where there is protection for consumers, businesses doing the right things, even collaborating with law enforcement when needed, ensuring there are no bad actors in the ecosystem.
“The second reason is as a nation – we are a technological country, we are a nation where software is one of the most important industries today – and cryptography is happening to be this development in the software industry and people are calling it Web 3.0. So with regulations we can drive more startups into this sector, And push for more funding in this sector, and that will help India be one of those leaders in the entire crypto technology sector.”
The main goal of the government is to prevent innocent retail investors from getting caught up in too many ads, too many WhatsApp redirects being seen in the crypto world. There is no real data source for this – in the crypto world you don’t know which source to trust. So, if regulation is put in place, how can one be sure that it can affect the asset class positively?
Singh said, with a lot of people now getting into crypto, the main need for virtual reality (VR) is to create more awareness, so that people can understand FOMO, the need to value currencies, and platforms to use. This is one of the main concerns. Existing exchanges have their own platforms where if they are on board with users, they try to educate them on what to do and what not to do about cryptocurrencies, and ways to keep their cryptocurrency safe.
“If regulations come out, it will be a nationwide awareness campaign or something like that that will be very beneficial to the whole community, so that new people entering crypto get an idea of this space, know what to do and what not to do so that they don’t fall prey to being scammed. ‘Because there have been cases where bad actors have appeared. Where there is potential to make money, some people always find ways to deceive others. So if some kind of awareness campaign is launched across the country, it will be very positive,'” Singh said.
Click on the video for the whole interesting discussion
(Edited by: Thomas Abraham)