A clear, comprehensive, and pro-innovation regulatory environment is crucial in persuading investors that India is the right place to invest their money, said Foong Leon, Binance’s Asia Pacific Head, in a conversation with the Indian Express.
“The idea is to allow the ecosystem to thrive rather than imposing restrictive insurance policies that prevent the space from gaining its full potential,” added Foong. “We will see a rise in the total number of crypto and Web 3.0 projects developed out of India if the right blockchain entrepreneurs are partnered with the right experience and capital.”
He believes that India will need a clear regulatory framework for buyers to invest their funds in its crypto startups. He is eager to make investments in India, but he needs buyers’ consolation and certainty that the Indian market is the precise market to invest their money in.
The assertion came when the Indian officials discussed levying 28% GST on cryptocurrencies, at par with gambling. It is in addition to the 30% tax on earnings from digital assets, including crypto. The government has also imposed a 1% TDS on crypto transactions.
Binance is Bullish on India’s Crypto Future
Binance is bullish on India’s crypto growth trajectory despite the regulatory hurdles.
“Blockchain startups are what gained the attention of Binance and several global tech investors and experts in India,’ said Foong. He asserted that the Indian crypto market has some fundamental competitive advantages, including but not limited to a sizeable market and a huge source of well-trained engineers.
“We saw the Indian tech VC investment growing almost threefold to 44.6 billion USD in 2021. If the right blockchain founders are marched with the right talent and capital, we will see an acceleration in the number of crypto projects built in India.”
However, Foong said before Indians invest in crypto, they need to have a thorough understanding of crypto. He added that Binance wants to encourage considered and sensible participation in the Indian digital asset ecosystem through properly educating its users.
A Thorough Understanding of Crypto Assets is a Must
Foong believes it is essential that an investor understand the virtual assets, including risks, before making any investments.
“Otherwise, investors will be left unprotected to losses. As one of the cardinal players in the industry, we take the responsibility to offer Indian investors the right channels and tools to learn more about the crypto assets,” he said.
Binance strongly advises crypto investors to do their research before jumping into any investment. Platform listing and launching tokens need to be backed by a strong team that can run extensive analysis and research on projects.
Adding further, Foong said, “with the awareness initiatives Binance is running in India, we hope to raise the importance of self-education and research before investing.” After all, he stated, the digital asset ecosystem will develop with a more healthy investment trend in the market.
Foong also explained how it holds true with the Luna Terra crash.
“With additional investments from multinational crypto players and the exponential development of local layer, we see enormous opportunity for more Indian entrepreneurs to develop quality projects,” Foong adds regardless.