India needs a single crypto regulator, says Polygon Co-Founder
The co-founder of the Ethereum-scaling software Polygon says India needs a single regulator that can oversee all crypto-related matters.
Sandeep Nailwal, who is one of the crypto industry’s most prominent Indian-born entrepreneurs and who now lives in Dubai, told CoinDesk that the creation of a collective authority composed of representatives from the Reserve Bank of India, Securities and Exchange Board of India, the Goods and Services Tax Council and Finance Ministry would encourage projects like his own to set up shop in the country.
“The finance ministry should be the one heading this task force, and every other institution should be given a clear mandate that no crypto case shall be handled locally. It should only be handled by the central crypto task force,” Nailwal said.
These steps, according to Nailwal are necessary to create a fair and open environment for discussion and to ensure that progress is made between blockchain advocates as well as monetary and national security advocates.
Nailwal stated that the different governments and enforcement agencies in India are now involved in crypto, with each having their own definitions of crypto. According to him, the technology demands a dedicated team.
“What they see is that crazy value is being created and try to see how it can be taxed in India. That’s needed, too. However, it is extremely difficult for each member of a regulatory body to understand this technology within their busy schedules. Hence we need one single highly empowered division, which has singular responsibility to interact, learn and enforce regulations on this fairly niche industry” Nailwal said.
Nailwal said it was primarily regulatory uncertainty that has kept Polygon out of India, and he has stated previously that although the co-founders are originally from India, Polygon is “not an Indian entity” but a “decentralized network with no headquarters.” He also said that Polygon is an entity registered in the British Virgin Islands.
“Polygon never set up in India from day zero,” Nailwal said.
Discussing Polygon’s primary focus and vision at a time when the platform has been involved in scaling, decentralized finance (DeFi), NFT (non-fungible token) apps, decentralized autonomous organizations (DAOs) and gaming, Nailwal explained that while the core goal is to purely scale up, the immediate focus is different.
“We have an obligation for the next two years and that is to evangelize because if we keep scaling, but there’s nobody to use the applications, then it’s not productive for anyone,” Nailwal said.