Dilip Chenoy, Chairman of Bharat Web3 Association, has called for a twin approach to law enforcement on tokenisation of land assets and NFTs for cultural aspects — an SRO (self-regulatory organisation) and government oversight.

Terming the whole gamut of Web 3 and each use-case as complex and different, Chenoy said what people are worried about in the Web3 space is cryptocurrency, money laundering, terror funding, and the threat of the dark web. Stating that the industry is supportive of focusing on these concerns, he added that "throwing the baby out with bathwater" is not the right approach.

Citing the European Union's Markets in Crypto Assets (MiCA) legislation on addressing the issue of financial instability, Chenoy told CNBC-TV18 that the legislation puts a cap on overall volumes and trades for an individual. Pointing out that Indonesia has whitelisted 250 tokens and Europe's system deems white papers issued by tokens as acceptable, he added that the European regulation is also evolving in nature and can be looked at while framing regulations for India.

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Describing the challenge of regulatory uncertainty in the Web3 space as the one pushing people overseas who want to create a market in this space, he added that the challenges are not only limiting the number of new initiatives coming up in the startup space but also stopping users and potential drivers of the ecosystem from aggressively moving forward.

Stressing on the importance of ensuring customer protection, decentralisation, and risk management; he said that the industry wants to prepare an SRO document after due stakeholder consultation, adding that Web3 applications can potentially reduce the budgetary need for many central ministries by up to 10 percent.

He said that India is among the top 4 countries adopting virtual assets, and the virtual digital asset space is going to see significantly more consumers with the VDA industry seeing rapid growth worldwide and a CAGR of 16 percent. Pointing to expert predictions on the Web3 ecosystem in India being around $1.1 trillion by 2032, he predicted that the startups in the Web3 space may have doubled since the last NASSCOM survey pegging their number between 450 and 500.

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