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The fallout of the Indian regulatory position on cryptocurrencies is leading to the exit of talents, businesses and investments from the country's blockchain space on a scale parallel only to a previous wave of flight of the technology industry during the boom of Internet of the late 90s and early noughties.
According to a recent report from News 18, a considerable number of developers, service providers and other organizations inside the cryptocurrency and the Indian blockchain have already fled, or are fleeing India to jurisdictions with provisions more friendly regulations such as Thailand, Estonia and Switzerland.
Ring-Fencing of the Indian Government
Recently, the central government of India has been engaged in a series of regulatory actions aimed at ring-fence the Indian cryptocurrency industry, apparently to combat recycling of dirty money and tax evasion. CCN reported a few days ago that the Reserve Bank of India (RBI) filed a sworn statement to the Supreme Court stating that under the provisions of the Coinage Act and the RBI Act, the bitcoin is not recognized as a valid payment system according to the Indian constitution because there
Frightened by this and other actions and statements by government agencies and officials, the cryptocurrency ecosystem in India is experiencing an exodus of talents and investments comparable to the way in which the technology industry Indian turned talent into Silicon. Valley. The blockchain ecosystem, which includes developers, cryptographers, merchants, cryptocurrency exchange platforms, blockchain service providers and other affiliated individuals and organizations is at the top of a new brain drain wave, which could prove disastrous for the nascent, relatively small industry. [19659002] Speaking with News 18, some exchange platform owners have revealed that they have already identified potential positions outside the country and are in the process of moving out.
By asking not to be identified, one of these the owner said:
"There are people and talented companies in the Indian blockchain community, but the constant fear of a sudden shooting that is coming down is forcing them out. Why not? Activities always thrive in a place that is favorable to products. "
Taking advantage of India's Loss
Some popular destinations for blockchain talents and investments fleeing from the hostile regulatory landscape India include Singapore, United Kingdom, Switzerland, Japan and Estonia, among others, but Estonia in particular seems to do better than most in benefiting from the loss of India of such people and organizations.
Already rated as one of the easiest places to do business in the world, and with a very blockchain regulatory atmosphere approach, Estonia also launched an electronic residence program in December 2014, which further simplified the process of registration of a company in the country. Its representatives held a session in India with the aim of attracting entrepreneurs, eventually bringing in 200 registered Indian startups.
In India, meanwhile, the government's antipathy towards bitcoin and other cryptocurrencies continues unabated, with the RBI recently revealing that its absolute ban on banks that facilitate encryption processes is not based on research or comparative analysis of global regulatory standards. The revelation, contained in a sworn statement submitted in response to a request for information from a New Delhi lawyer, indicates that the government's position on encryption is effectively based on a negative sentiment with respect to the actual regulatory problems.
Among the difficulties of Indi position on cryptocurrencies, however, the government continues to explore blockchain technology as a solution to many of its long-standing service delivery issues such as issuing birth certificates.
Featured image from Shutterstock.
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