A&A members discuss the lack of focus on Web 3.0 technologies in Budget 2023

Budget 2023 has led members of the fintech community to express concern due to the lack of focus on Web 3.0 technologies. Our Partner Sumit Kochar and Associate Upamanyu Banerjee were interviewed as part of industry insiders' round-table analysis of the budget by 3versetv.io, a leading Web 3.0 platform in India. It was mentioned that the lack of focus on web 3.0 investment or regulation in the budget as well as the absence of additional regulations on VDAs in India following the taxability provisions introduced in the last budget will only hasten the capital flight from the country and will lead to a loss of future tax revenue in the process. The probable cause to this was the fact that all the stakeholders in the financial regulatory ecosystem in India were not on the same table regarding the best way forward with regulating the VDA industry in India. It was concluded that continuing with the existing system of almost punitive taxation will only lead to a greater capital flight and encourage the formation of a large grey market in the country’s financial market ultimately posing a major probable threat to the country’s economic framework when India has assumed the presidency of the G20.