India’s Crypto Brain Drain is “Absolutely Crazy”, Polygon Co-Founder Says

The Indian government’s indecisiveness on whether to ban digital assets or regulate them has caused thousands of developers, investors, and entrepreneurs to leave for places with friendlier regulation, according to a co-founder of Polygon who is originally from India. “The brain drain is absolutely crazy,” said Sandeep Nailwal, who co-founded Polygon in 2017, and relocated to the crypto hub, Dubai, two years ago. “I want to live in India and promote the Web3 ecosystem. But overall, the way the regulatory uncertainty is there and how big Polygon has become it doesn’t make sense for us or for any team to expose their protocols to local risks,” Nailwal said in an interview from Dubai. Earlier this week, India’s Finance Minister Nirmala Sitharaman acknowledged the industry’s potential as a source of tax income, saying “Many Indians have seen a future in it, therefore I see a possibility for revenue in it.” However, she remains indecisive on whether to ban them or regulate it. According to blockchain analysis Chainalysis, India has the world’s second-highest rate of crypto adoption behind Vietnam. The overall crypto transactions have also surged 641% between July 2020 and June 2021, according to the Chainalysis report from October. However, the burden of a steep 30% crypto tax and the return of the central bank’s push for a ban could contribute to extending the brain drain for considering relocation to crypto-friendly jurisdictions...