Over 80% of blockchain developers in India will be forced to move abroad due to lack of regulatory framework.
The government’s lack of initiative has already forced many blockchain developers and start-ups to shift their domicile to nations that offer tax incentives and e-residency.
A committee formed under Niti Aayog is working on a paper to highlight the prospective use of blockchain technology.
Payments for working on these projects are often in cryptocurrencies.
“An Indian developer may be able to receive tokens but if there is no legal way to convert it into Indian rupees, a majority of prospective professionals may be deterred by the possibility that these incentives may be worthless in India or whether the government will consider their work noncompliant in any way,” the report said.
This has also caused a setback on the skill front. Only 5,000 (0.25%) of the 2 million software developers in India currently have the right blockchain skills.
India is also trailing behind in terms of VC funding for blockchain start-ups. The Bengaluru-based blockchain community also suggests that regulating fundraising through ICOs will significantly improve access to capital for early-stage ventures.