Enabling and Futuristic Regulatory Framework Required to Harness the Full Potential of NFTs in India: IAMAI ESYA Center Report
An enabling and scalable regulatory and legal framework is needed for Non-Fungible Tokens (NFTs) to help the Indian economy take full advantage of technological innovation. A recent report from Esya Centerin association with the Internet and Mobile Association of India [IAMAI] entitled “NFT: a technological and legal introductionsuggests that while several jurisdictions have introduced laws and regulations to govern crypto-assets, no country has yet proposed comprehensive regulations for NFTs, given the emerging legal and regulatory concerns associated with their use. also identifies several regulatory and legal challenges currently facing NFTs in India, which hinder their growth and adoption.
Non-fungible tokens are a form of code/software that helps prove ownership of digital and physical assets in the virtual realm, which was not possible before. As a result, NFTs can be used for several different purposes, such as digital art, collectibles, fashion, and finance.
The report sheds light on the growing involvement of Indians in all aspects of the NFT value chain. For example, Polygon, a blockchain founded by three Indian developers, is increasingly preferred by major marketplaces and artists to create and host their NFTs. Similarly, NFT marketplaces that cater specifically to the interests of Indian audiences have also emerged. For example, Rario creates NFTs based on highlights and notable events of cricket matches. Indian celebrities, such as Amitabh Bachchan, have also used NFTs to engage with their fans.
Commenting on the report, IAMAI President Dr. Subho Ray said: “The introduction is intended to raise awareness among policy makers of the different types of NFTs and their future possibilities. Each should perhaps be regulated and taxed differently and not with a single, wide range of “virtual assets”.
The report highlights the legal and regulatory concerns that need to be addressed to fuel the growth of the NFT ecosystem. Report co-author Mohit Chawdhry, Junior Fellow at the Esya Centre, said some of these concerns “stem from the potential use of NFTs for money laundering, tax evasion and infringement of property rights. intellectual” and must be resolved. Furthermore, “greater clarity on FDI caps in NFT markets and their obligations under the Exchange Management Act will also help strengthen the ecosystem,” he added.
The report presents suggestions for policymakers, entrepreneurs, developers and creators to help promote healthy industry growth. The report also addresses copyright and IPR issues associated with NFT that NFT creators and resellers should be aware of before engaging with NFT assets.
The Internet and Mobile Association of India [IAMAI] is a young and dynamic association with the ambition to represent the full range of digital businesses in India. It was established in 2004 by leading online publishers and over the past 16 years has been successful in effectively addressing the challenges facing the digital and online industry including mobile content and services, publishing online, mobile advertising, online advertising, digital entertainment, e-commerce and mobile and digital payments, among others.
Sixteen years after its establishment, the association is still the only professional body representing the online industry in India. The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 300 Indian and overseas companies, and with offices in Delhi and Mumbai, the association is well placed to work to chart a growth path for the digital industry in India.
About the Esya Center
The Esya Center is a New Delhi-based think tank that aims to generate empirical research and inform thought leadership to catalyze new policy constructs for the future. It simultaneously builds institutional capacity to foster ideas that link the triad of people, innovation and value, helping to reinvent public policy discourse in India. More information at www.esyacentre.org