India has produced some of the world's top tech talent, but that talent may be moving to other countries.
Sandeep Nailwa, CEO of Polygon, the largest Layer-1 protocol on the ethereum network, warned that the cryptocurrency brain drain in India is insane. He made the statement in an interview with Bloomberg.
India's hesitation to adopt digital assets has led thousands of developers, investors and entrepreneurs to leave for more regulation-friendly places, according to CEO Nerva said.
"The brain drain is absolutely insane. "I want to live in India and promote the Web3 ecosystem. But in general, the way regulatory uncertainty exists and how big Polygon is, it doesn't make sense for us or any team to expose their protocols to local risk."
With more than 15 million cryptocurrency users, India has one of the largest user bases in the world. However, the country has been embroiled in a regulatory debate over cryptocurrencies in recent years.
The Indian government has imposed a 30% tax on cryptocurrency transactions, but the overall regulation of digital assets remains unclear.
At the time, India's Finance Minister Nirmala Sitharaman said the government had not yet made a final decision on banning or regulating virtual currencies. However, she said.
"Many Indians see a future in this, so I see the possibility of revenue. The government is imposing a 30 percent tax on digital currency transactions."
Nailwa warned countries around the world that if they don't figure out how to regulate the cryptocurrency space, they could lose even more talent. He added that.
"The country will continue to lose the ability for new talent until they discover it. In a sense, cryptocurrency is very destructive, and it has the potential to undermine not only the concept of money, but also the concept of government."