Web3 devs, gamers, investors thrive despite India’s crypto policy hurdles

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20 hours ago

March 11, 2025

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Web3 devs, gamers, investors thrive despite India’s crypto policy hurdles

India’s contribution to the global Web3 ecosystem — primarily in software development, gaming, investments and startup funding — increased year-on-year despite an absence of locally tailored crypto regulations.

India’s share of global Web3 developers grew from 5% to 12% in the last 10 years, second only to the United States as of 2024, according to the India Web3 Landscape Report 2024 by Hashed Emergent, shared with Cointelegraph.

Speaking to Cointelegraph, Tak Lee, CEO and Managing Partner at Hashed Emergent, pointed out four key factors driving India to the top of global crypto adoption: retail crypto transactions on centralized services, highest trading volumes, institutional adoption and retail DeFi transactions.

Gen Z dominates the Web3 developer landscape in India

The growth is driven by the younger generation, as roughly 80% of all blockchain developers in India are between 18 and 27 years of age. The Indian developers in DeFi, Payments, AI and SocialFi prefer Solana as the go-to blockchain.

Ton, Aptos and Base are steadily gaining momentum across other key sectors, driven by the expanding presence of layer-1 and layer-2 ecosystems, the report noted.

While funding opportunities and builder initiatives like hackathons support initial growth, Indian developers have pointed out employers’ lack of willingness to pay salaries that match global industry standards.

The challenges faced by Web3 gaming projects are the extremely high cost of customer acquisition (CAC) to onboard Web3 users and the lack of quality gameplay beyond financial incentives to retain Web2 gamers. “Therefore, several of these games are now focusing on having great quality games before integrating blockchain mechanics or tapping into Indian gamers’ craze for RMG,” Lee explained.

In contrast, investments into the Indian Web3 landscape saw a 224% increase in 2024 compared to the previous year — sourced from various avenues such as local funds, ecosystem funds and corporate venture arms of leading exchanges.

Lee told Cointelegraph that the lack of growth capital in the Web3 world, along with the absence of traditional venture/growth/private equity funds, makes it difficult for Indian firms to raise capital, adding:

“Therefore, entrepreneurs explore crowd sales as a way to fund their future growth. Some renowned projects may also explore crowd sales due to higher valuations offered but this is extremely rare and done by the extremely blue chip founders who can raise money from retail with ample certainty and high volumes.”

Compared to the previous years, the substantial growth in Web3 investments in 2024 “signals a gradual recovery, with investors focusing on emerging areas of decentralized finance,” the report said.

India is a global hub for founders and developers, currently home to the second-largest developer market and third-largest founder base globally.

Some of the main barriers preventing large-scale investments, according to Tak, have to do with the “slower than anticipated growth of some of these startups .“ Unclear regulations and compliances also hinder Web3 investments in India.

Growing Web3 against all odds

Despite an active high-tax environment on cryptocurrency, small-scale crypto investments saw an uptick in India. Traders generally preferred small, frequent trades, with 96% maintaining positions less than $12 with an average of 11x-20x leverage. Females represented 1 in 10 futures traders in India, highlighting the scope for greater participation.

The report called for reforms in crypto tax deductions and reporting in addition to the need for federal guidance and tax implications:

“India must overcome its negative policy perception that stifles innovation and instead focus on identifying and addressing the pain points faced by stakeholders with effective regulation that will incentivize the Web3 sector to grow and thrive.”

The policy wish list for the Indian Web3 includes the regulatory framework for virtual asset service providers (VASP), tax rationalization, streamlined banking and payment access for Web3 companies, exemptions from VASP regulations and clarity on existing regulations.

Recent regulatory initiatives like URL blocking of locally unlicensed crypto exchanges have resulted in the influx of funds to self-custodial solutions (decentralized exchanges) or domestic exchanges, which are regulated under Indian law.

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Politics

Cboe seeks to add staking to Fidelity’s Ether ETF

Published

4 hours ago

March 11, 2025

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Cboe seeks to add staking to Fidelity’s Ether ETF

Securities exchange Cboe BZX is seeking permission from US regulators to incorporate staking into Fidelity’s Ether exchange-traded fund (ETF), according to a March 11 filing.

The filing marks Cboe’s latest attempt to support staking for the Ether (ETH) funds traded on its US exchange.

Cboe’s proposed rule change would allow Fidelity Ethereum Fund (FETH) to “stake, or cause to be staked, all or a portion of the Trust’s ether through one or more trusted staking providers,” the filing said.

The Fidelity Ethereum Fund is among the most popular Ether ETFs, with nearly $1 billion in assets under management, according to data from VettaFi.

In February, Cboe asked permission to add staking to another Ether ETF, the 21Shares Core Ethereum ETF.

Staking Ether enhances returns and involves posting ETH as collateral with a validator in exchange for rewards.

As of March 11, staking Ether yields approximately 3.3% APR, denominated in ETH, according to Staking Rewards.

Other popular cryptocurrencies, including Solana (SOL), also feature staking mechanisms.

Proposed rule changes

The US Securities and Exchange Commission must still approve Cboe’s proposed rule changes before staking can commence.

In February, the SEC acknowledged more than a dozen exchange filings related to cryptocurrency ETFs, according to records.

The SEC’s acknowledgments highlight how the agency has softened its stance on crypto since US President Donald Trump started his second term on Jan. 20.

In addition to staking, the filings, submitted by Cboe and other exchanges, addressed proposed rule changes concerning options, in-kind redemptions and new types of altcoin funds.

Cboe has also asked permission to list Canary and WisdomTree’s proposed XRP (XRP) ETFs and support in-kind creations and redemptions for Fidelity’s Bitcoin (BTC) and ETH ETFs, among other proposed changes.

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Politics

Texas lawmaker seeks to cap state’s proposed BTC purchases at $250M

Published

4 hours ago

March 11, 2025

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Texas lawmaker seeks to cap state’s proposed BTC purchases at 0M

A member of the Texas legislature has proposed a bill that could limit the amount local and state authorities invest in cryptocurrency as a reserve asset.

In a bill filed on March 10, Texas Representative Ron Reynolds proposed the state’s comptroller not be allowed to invest more than $250 million of its Economic Stabilization Fund — otherwise known as a “rainy day” fund — in Bitcoin (BTC) or other cryptocurrencies. The legislation also suggested that Texas municipalities or counties could not invest more than $10 million in crypto.

Law, Texas, Bitcoin Reserve — *HB 4258, filed by Texas Representative Ron Reynolds. Source:* *Texas legislature*

The proposed bill followed the Texas Senate passing legislation on March 6 to establish a strategic Bitcoin reserve in the state. The SB 21 bill seemingly could allow the Texas comptroller to have no limit on purchasing BTC for a reserve, based on the most recent draft.

The plan for a strategic Bitcoin reserve in Texas was one of many separate bills proposed in US state governments following the inauguration of President Donald Trump and Republican lawmakers winning control of the US House of Representatives and Senate. Texas Lieutenant Governor Dan Patrick said in January that the state’s legislative priorities for 2025 would include a proposal to establish a Texas Bitcoin Reserve.

Is there a partisan divide on state and federal crypto plans?

It’s unclear if Rep. Reynolds, a Democrat, intended to support the BTC reserve bill introduced by State Senator Charles Schwertner, a Republican, or propose restrictions in the event the legislation becomes law. If passed and signed by Governor Greg Abbott, the bill would take effect on Sept. 1. Cointelegraph reached out to Rep. Reynolds’ office for comment but did not receive a response at the time of publication.

Though Trump signed an executive order on March 7 to create a federal “Strategic Bitcoin Reserve” and “Digital Asset Stockpile,” many legal experts have questioned the US president’s authority to enact specific policies through EOs. Wyoming Senator Cynthia Lummis reintroduced legislation on March 11 to codify the proposed BTC reserve into law in the Senate.

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Politics

Rupert Lowe ‘keeping options open’ after ousting by Reform UK

Published

4 hours ago

March 11, 2025

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Rupert Lowe 'keeping options open' after ousting by Reform UK

Ousted Reform UK MP Rupert Lowe has told Sky News he has not ruled out joining the Conservatives or a new political party, declaring: “I’m keeping my options open.”

Mr Lowe answered a series of questions from Sky News after the latest twist in his feud with Nigel Farage, with a police investigation launched into claims he threatened party chairman Zia Yusuf.

The Metropolitan Police announced it had launched an investigation “into an allegation of a series of verbal threats made by a 67-year-old man” between December 2024 and February 2025.

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Responding to the police statement, Mr Lowe said he had instructed lawyers, who had made contact with the Met and made them aware of his willingness to co-operate in any necessary investigation.

“My lawyers have not yet received any contact from the police,” he said.

“It is highly unusual for the police to disclose anything to the media at this stage of an investigation.

“I remain unaware of the specific allegations, but in any event, I deny any wrongdoing. The allegations are entirely untrue.”

Could Lowe join Tories?

Later, Sky News asked the Great Yarmouth MP if he thought there was a way back into Reform UK for him or was this the end – and if he might join the Tories or a new political party.

“This has all happened over a few days,” Mr Lowe replied.

“I have been focused on debunking these false and damaging allegations. Who knows what will happen? I’m keeping my options open.”

In an interview on Monday, Mr Lowe said: “I was a Tory years ago. I think the Tories have got a lot of work to do. I think there’s some extremely good Tory MPs. I get on with a lot of them.”

For the Conservatives, the shadow home secretary Chris Philp said: “He hasn’t applied but obviously we’re a broad and welcoming political party.”

He told Times Radio: “People have been joining the Conservatives from across the political spectrum and we always welcome new joiners.”

New splinter group?

And in a move seen as a hint of a new splinter group, another ousted Reform UK politician, former deputy leader Ben Habib, told The Daily Telegraph that Mr Lowe was a “good friend” and he was “constantly in touch with” him.

Sky News also asked Mr Lowe who he blamed for the party’s treatment of him, including throwing him out of the party after he criticised Mr Farage. Was Mr Farage or Mr Yusuf to blame?

“Honestly, all of them,” he said.

“This was a team effort to blacken my name. If it wasn’t for my presence on X, I would have been buried under the false allegations. For that, I have to thank Elon Musk.”

He was asked about Mr Farage quoting Labour minister Mike Kane claiming after a heated Commons clash with Mr Lowe in December: “The anger displayed towards me clearly showed a man not in charge of his own faculties.”

In a Sunday Telegraph article, Mr Farage added: “I never saw anything like it in the European Parliament in 2019 when I was the leader of the Brexit Party and Mr Lowe was an MEP colleague.”

In response, Mr Lowe told Sky News: “Reform sources have been briefing that I have dementia. This is the single most appalling thing I have ever seen in politics.

“Anyone who has known someone who has suffered so hideously from dementia will understand just how offensive it is. It shows the type of people we are dealing with.”

In the same article, Mr Farage claimed there had been “too many similar outbursts from Mr Lowe, often involving the use of inappropriate language to the despair of our chief whip, Lee Anderson”.

Mr Lowe hit back, telling Sky News: “More baseless nonsense, spouted out to tarnish my reputation. Their malicious witch-hunt has fallen apart.”

Last year, when Mr Anderson was Conservative Party deputy chairman, he apologised after parliament’s watchdog on bullying and harassment found he told a security guard to “f*** off, everyone opens the door to me”.

He was found to have twice sworn at the security officer and acted in a way that “constituted bullying and also harassment” in breach of parliament’s behaviour policy, an independent expert panel concluded.