Policymakers back VDA regulation at BWA conference

New Delhi : The Bharat Web3 Association, the apex body for the leading Web3 technology companies in India in partnership with The Dialogue, a leading technology policy think tank hosted a conference to mark the conclusion of the 100-day Crypto S.A.F.E. (Secure Asset & Financial Education) campaign. It is a landmark initiative aimed at strengthening consumer awareness across India’s rapidly growing Virtual Digital Asset (VDA) landscape. Titled "Securing the Future of Web3: Building Trust, Safety, and Awareness in India's Crypto Ecosystem," the event brought key voices together.  

Key senior policymakers, including Mr. Rohit Kumar Singh (Member NCDRC, Former Secretary Consumer Affairs), Ms Kanika Wadhawan (Joint Director, OSD FATF Cell, DoR, Ministry of FinanceMinistry of Finance), Mr Rakesh Maheshwari (former Senior Director MeitY), and Dr. A. Damodaran (IIM Bangalore & ICRIER) attended the event. Additionally, founders and business leaders from the Web3 sector and members of the BWA were also present. 

Delivering the keynote address, Mr Rohit Kumar Singh set the tone for the discussions:

“Taxation isn’t the solution — regulation is. We need to take this head-on. Innovation will always move faster, so our regulatory approach and government response must be agile to keep pace.”

He advocated in favour of making a start with Self-Regulatory Organizations (SROs), not as an alternative to regulation, but as a precursor to them, stating "Let's do self-regulation first," drawing parallels with successful models like the Advertising Standards Council of India (ASCI).

Ms Kanika Wadhawan emphasized the importance of consumer protection through strong compliance with FATF standards, which aims to safeguard the financial system from money laundering and illicit activity.

Building on these perspectives, a panel featuring Dr. Damodaran, Maheshwari, and Dilip Chenoy (Chairman, BWA) explored key pillars of responsible Web3 governance, including risk mitigation, platform accountability, and incident response frameworks. The panel was expertly moderated by Ms. Urvashi Kapoor, Senior Editor & AGM at Jagran New Media.

Dr. Damodaran emphasized the need for proactive regulation:

“India cannot afford to be a passive observer in the Web3 era — we must lead with policy innovation that matches our technology ambitions.”

Maheshwari highlighted the need for strong cybersecurity practices:

“Cybersecurity is prima facie a business responsibility,” he said, urging platforms to implement CERT-IN guidelines and embed privacy and trust from the start.

He added, “The goal is not to regulate technology, but to regulate misuse of technology.”

From the industry’s perspective, Dilip Chenoy, Chairman of the Bharat Web3 Association, highlighted the sector’s rapid growth and economic impact. He revealed that India’s Web3 ecosystem raised $564 million in 2024, marking a 109% increase over the previous year and bringing total funding to $3 billion.

Chenoy emphasized the need for regulatory clarity, stating, 

“India’s Web3 space raised $564 million in 2024, a 109% increase over the previous year, bringing total funding to $3 billion. The industry is not asking for a free hand, but a stable hand.”

He advocated for a self-regulatory approach as a meaningful first step toward formal oversight, noting that such frameworks have the potential to demonstrate responsible behaviour and build trust with policymakers and consumers alike.

He further pointed out that 17% of new global Web3 creators in the past year were from India, allowing the country to surpass the United States in total Web3 creator count. With over 1,200 startups and a 63% increase in tax collections from the sector over the past two years, Chenoy underscored the significant economic contribution and potential of India’s Web3 landscape.

Key Takeaways: Charting India’s Web3 Path

• Education as the First Line of Defense: Introduce financial and Web3 literacy at the school level, using regionally localized content to counter misinformation.

• Start with SROs: Self-regulatory organizations can act as “force multipliers” to bridge the gap between innovation and oversight.

• Adopt a Light-Touch Regulatory Approach: Avoid overregulation while fostering collaboration among regulators, platforms, and users to enable innovation and protect consumers.

As the country continues to lead in crypto adoption and Web3 development, the path forward lies in striking the right balance between growth and governance.