Given the uncertainties shrouding India's crypto ecosystem, many stakeholders are looking at foreign shores. In the concluding part of our crypto series, we look at its impact on the growth of the industry in India
The fact that there is a beaten path and a welcoming policy environment for crypto firms in jurisdictions outside of India, “you are somewhat guaranteed or have a visibility of a steady regulatory stability [overseas]”. Image: Shutterstock
Indian entrepreneurs setting up operations overseas or tech engineers/developers letting go of jobs in India to join companies overseas constitute the classis ‘brain-drain’ syndrome. The Web3-crypto ecosystem has for a few years now also started to see cases of founder-promoters registering their companies overseas. It is not classic brain-drain but it hurts India as the government loses out on potential tax collections. India’s IT sector has been witnessing this practice for nearly three decades now.
KoineArth’s Founder and CEO Praphul Chandra says: “Brain-drain does worry me. Legal entities will relocate. If the legal entity is outside India, then the intellectual property is outside India and tax paid is outside India. Web3 will spread so vast that the impact will be significant.”