Crypto Clarity Incoming: India’s COINS Act Charts a Bold Web3 Roadmap

India's crypto environment is to experience a seismic upheaval with the launch of the COINS Act—Crypto-systems Oversight, Innovation and Strategy—a template piece of legislation that will introduce clarity, innovation, and consumer rights to India's digital asset environment. Hashed Emergent and Black Dot Policy Advisors introduce the Act, and the objective is to transform India from a regulatory minefield to the world's top Web3 hub.

Key highlights of the proposal are

Enshrines digital rights such as self-custody, protocol access, and financial privacy as constitutional rights

Suggests a stand-alone cryptocurrency regulator, Crypto Assets Regulatory Authority (CARA), whose only role is to oversee Indian crypto services

Introduces differentiated compliance: full licensing for centralized platforms, light disclosure for non-custodial protocols, and exemption for decentralized systems

Grants token releases safe havens, such as a two-year moratorium on FEMA regulations to encourage innovation

Demands for a national crypto reserve funded with seized assets and small market purchases to facilitate digital sovereignty

Why it matters

Addresses India's modern issues: over-taxation, unclear KYC/AML regulations, and eroded legal protection for users

Aims to turn around Indian Web3 talent and project outflow to overseas destinations

Meets global norms like EU's MiCA and Singapore's sandbox, modified according to India's constitutional system

Fosters community-driven policymaking through workshops and interaction with regulators

The COINS Act is not binding but offers a visionary blueprint to India's future digital landscape—attempting to balance innovation with regulation and empowering users at its core.

Sources: Cointelegraph, Coinpedia, BTC Peers, Forbes India, Economic Times, ThePrint, QKLW, WN.com