The story of crypto assets in India has been intrinsically linked with disruption. While investors and institutions are beginning to get accustomed to the idea of cryptocurrencies, non-fungible tokens (NFTs) and their growth in popularity are another intriguing development happening in this space. NFTs initially started as a niche segment known only to crypto enthusiasts, but now they have become a globally trending commodity. This is underlined by transaction volumes of over $21 billion globally.
This trajectory is true in the case of India as well, with notable celebrities and institutions issuing their own line of NFTs, ensuring that they get attention from followers, investors, and analysts. The launch of NFT market places, which have on boarded over 300 artists, NFT-based brands, and the aforementioned celebrity NFT collections, have brought it closer to the mainstream discourse.
The imminent Cryptocurrency Bill has also brought aspects, such as the valuation of digital assets and investor protection to the forefront. This year’s Budget introduced a formal tax on gains from digital assets, and signs point towards the possibility of NFTs being included under this ambit. Considering the impending nature of this regulation, we will aim to unpack the rise of NFTs, its use cases, and the regulatory themes in this context.