With Web 3.0 Regulatory Sandbox, Telangana has opened doors for companies to test products, solutions, etc.

Hyderabad: The Government of Telangana recently announced the launch of a Web 3.0 Regulatory Sandbox. With this, it has opened the doors for local and international companies and innovators to test technologies, products, services, solutions, business models and even policies in a ‘live’ environment in the Sandbox. This will also help regulators to identify barriers to beneficial innovation. Applications for this will be open twice in a year.

What is Web 3.0?

It took more than 10 years to go from the original web, Web 1.0, to Web 2.0. Web 3.0 (Web3) is the third generation of web technologies and it is in progress. While there is no universally accepted definition for Web3 yet, the emphasis is on blockchain-based technologies, machine learning, and artificial intelligence to create intelligent, adaptable, and decentralized applications. .

What is a Regulatory Sandbox?

A regulatory sandbox refers to the live testing of new products or services in a controlled regulatory and/or testing environment. Regulators may allow certain regulatory relaxations for the limited purpose of testing. It allows the regulator, innovators and service/product providers to field test, gather evidence on the benefits and risks of new innovations and ideas. These will be monitored and the risks contained. The banking and insurance sectors have been using this channel to seek innovations.

How it helps:

“The Web 3.0 Regulatory Sandbox is a great initiative of the Government of Telangana. Having previously worked with the Government of Telangana, most recently for India Blockchain Accelerator, we have witnessed the State’s progress in fostering Web 3.0 development and supporting startups with new and innovative solutions,” said Kaavya Prasad, Founder, Lumos Labs, Singapore. innovation management company that runs open innovation programs in technology.

“Through the Sandbox, startups will be able to present their solutions in a safe space and receive proper regulatory support and guidance, which will be a great boost for the Indian and global Web3 industry.

Given the current ambiguous regulatory environment, this initiative can encourage pioneering decentralized solutions that bypass regulatory checks and are open and secure,” he said.

This will open the doors for further discussion by regulatory bodies as they will be able to identify barriers to innovation. They can also receive feedback on the current innovation ecosystem and make any necessary changes.

“There have been cases of legal experts providing guidance and raising awareness on the regulatory aspects of Web3. India is actively engaged in discussing and navigating the legal ramifications of decentralized technology and other emerging technologies with experts. However, Telangana’s Web3.Regulatory Sandbox will be the first of its kind where a government is taking active steps to provide proper guidance to fledgling startups. He is also open to incorporating the feedback into future State policies”, he said.

What changes can occur:

“We expect good changes in Web3. Through this initiative, we take another step in fostering innovation and working with the Web3 ecosystem to bring about change in today’s ambiguous Indian Web3 legal sector. Through the Sandbox, Web3 startups can move forward with their solutions or make the necessary changes to become legally compliant at an early stage, avoiding permanent losses. We can follow the progress of the industry and how the global and Indian Web3 ecosystems are increasing their offerings. Through this, we get valuable data that helps create regulations that encourage innovations,” he said.

Last week, Telangana signed a Memorandum of Understanding with Coinbase Inc, a Web 3.0 giant, to help build a strong Web 3.0 community in Telangana. He will be a technical advisor for the Web3 related initiatives implemented by Telangana and will also work on the Regulatory Sandbox.