Indians Head towards Blockchain-Friendly Destinations
Indians are heading towards blockchain-friendly destinations in the absence of any encouragement for either the blockchain technology or the cryptocurrency market. This has driven not only developers but also service providers and other enterprises to move towards destinations that are digital currency-friendly. It is quite clear that they do not want to miss the opportunities that are currently available in the world. Aside from this, there is also a strong demand for talents with the new age technology. However, there is some amount of risk attached since they might risk leaving the already performing sector.
According to FactorDaily, the migration was due to different moves of the domestic government that is protecting against the cryptocurrency in the country. This is driving the people in the blockchain industry to look for more friendly locations. The current situation has also been compared with the dotcom boom of 1997 – 2001 that drove a mass departure of topnotch professionals from India to countries that offered better options. This could be positive for Indian IT professions, who were hitherto more focused on migrating to the United States for opportunities.
The United Kingdom-based Outlier Ventures analyst, Joel John, has reportedly said, “We are having talented people and companies from the blockchain space move out of India. There are enough countries out there who realize the importance and want to take the lead in the blockchain ecosystem.” Significantly, this came on the back of startups and companies finding other destinations for different reasons like taxation and funding. This included Singapore and Ireland. Though India has also started offering some incentives to startups, it appears to have fallen short of expectations.
Shifting Is Not New
John believes that companies shifting their base to abroad are nothing new to India. However, the regulatory complexities that the blockchain-associated companies face have accelerated the pace. That is because they could find an easy place like Cayman Island, Singapore, and Malta and establish enterprises so that they could start working on their project. That would also allow them to lead a technology wave and not ending up playing a catch-up role.
However, he pointed out that though the company is registered outside India, a product could still be developed in the country. Currently, there are at least few top destinations for blockchain to attract Indian developers and companies. Japan, Switzerland, the United Kingdom, Estonia, and Singapore are some of the places where blockchain communities are encouraged. Yet, Estonia is a favorite due to its friendly regulatory environment.
Regulation Is Tough
Enkidu is a decentralized collaboration platform created in Bengaluru though its parent firm, Avalon Labs, is registered in Singapore. Its chief marketing officer, Abhinav Arora, pointed out that the regulation in India is a difficult one for initial coin offerings (ICOs). Therefore, the company is looking Estonia as a possible location to register. Though he considered Japan, he felt that taxation cost prevented him from going there.
Enkidu was able to raise 1,311 ETH during its recently completed ICO presale. It would be used to fund the product development. However, Indian rules do not allow the liquidation of Ether.