The cryptocurrency situation in India, agree or not, has been a complete mess in recent times. Although the country ranked second in terms of cryptocurrency adoption last year with over 15 million active crypto-traders, Polygon co-founder and India-based entrepreneur Sandeep Nailwal recently highlighted the “crazy brain drain” in the Indian crypto sector. He also mentioned the lack of proper regulations and infrastructure for crypto and digital assets in the country and how improvements in the sector could make India a global crypto hub in the future.
India Suffers from Crypto Brain Drain: Polygon Co-Founder
In a recent interview with Scott Melker on his “Wolf of All Streets” podcast, Sandeep Nailwal joined to explain the significance of Layer 2 blockchains in the market and how crypto companies like his own Polygon, formerly known as Matic network, are pivoting to Dubai set up their headquarters.
Nailwal mentioned how he and Vitalik Buterin, the co-founder of Ethereum, donated millions of dollars in cryptocurrencies to help India during the second wave of the COVID-19 pandemic. In this conversation, the Polygon co-founder highlighted how it is challenging to send cryptocurrencies in India, citing the government regulations and the crypto-based scams in the country.
For those wondering, Nailwal’s Polygon is not an India-based startup, and nor does it have any headquarters in the country. In fact, current reports suggest that the best crypto-based based companies are turning to Dubai to set up operations, despite India being one of the largest crypto adopters in the country, with cryptocurrencies like Dogecoin and Shiba Inu being the most popular ones.
However, the Indian government has been pretty confused about the crypto-finance sector in the country. We recently saw the government levy a 30% tax on crypto income and digital assets, further crippling crypto finance in India.
Plus, citing the current crypto brain drain situation in India and the fact that Dubai is becoming a crypto hub in the world, the government should take the necessary actions to boost cryptocurrency adoption in the country. Although it has launched a new digital currency called “Digital Rupee”, the regulations surrounding the crypto sector still need significant improvements. So, with these efforts, the government could make India a global crypto hub for companies and drive the country’s economy to the next level, going forward.
So, what do you think about the current crypto situation in India? Is the Indian government is doing enough to boost crypto finance in the country? Let us know your thoughts in the comments below.