Binance, CoinDCX, Mudrex, Canton seek clarity from Indian regulators on crypto tokens, Web3 business policies

Binance, CoinDCX, Mudrex, Canton seek clarity from Indian regulators on crypto tokens, Web3 business policies

Crypto exchanges and Web3 players including Binance, CoinDCX, Mudrex and The Canton Network weighed in on regulatory priorities, tokenisation use cases and the future of Web 3 stack at Moneycontrol’s India Web 3.0 Summit in Mumbai on October 30.

Rachel Conlan, CMO, Binance said that the regulators need to be mindful that the policies don’t become a “roadblock to users entering into this space.”

“It should not create more fear or it should not push people to opt for alternative decentralized solutions. Also, clarity on tax and looking at where the tax ownership holds whether it's on industry players like us or on the users,” she said in conversation with Arvind Gupta, cofounder & head, SUTRA & Digital India Foundation.

Edul Patel, Co-founder and CEO, Mudrex is hoping to see regulated stable coins, clarity around exchanges and what their businesses should be.

According to Sumit Gupta, Co-founder and CEO, CoinDCX, there needs to be rationalisation of taxes, support to the domestic industries and Web3 builders. Additionally, a structured and consultative approach between government and industry players.

Tokenisation of real-world assets and remittances came out as the biggest use cases of the web 3 stack in its current form.

The Canton Network, which globally responsible for tokenising over $6 trillion worth of real-world assets, believes India will be an “incredibly interesting place to look at” with the tokenisation process used to tokenise land titles, traditional assets or natively issued assets.

“In the case of India, being able to take these different areas and different focus points and being able to bring them into the digital world has huge, huge benefits,” said Beatriz Callaghan, Sales Director, Canton, adding that tokenisation would enable fractionised ownership of real-world assets.

Patel highlighted that sending money to India from a different takes 3-5 days and costs 3-5%. India receives over $130 billion of just consumer remittances in a year. Indians also end up spending billions of dollars in bank fees to make these remittances.

“Because the costs are so high, people are anchored to send north of $2,000 or $3,000 back. So if the cost of central bank transactions reduces, you can send as low as 10 dollars back to India. Things like stablecoins or CBDCs can make these transfers very cheap and even instant, in seconds instead of days,” Patel explained.

"We are at a unique juncture with Web 3, where there is an opportunity in front of us to replicate the success that India has seen in the UPI," Gupta said.