Bengaluru, April 20, 2024: In a significant move towards further strengthening the Virtual Digital Asset (VDA) ecosystem, India’s premier Web3 and crypto assets industry association, the Bharat Web3 Association (BWA) introduces guidelines for the listing of tokens on member VDA platforms. These guidelines are the outcome of detailed deliberation and meticulous collaboration between BWA member VDA platforms and will help establish standardized and transparent processes to ensure consistency and integrity in token listing procedures.
The guidelines emphasize the vital role of strong processes for listing tokens, acting as the basis for a safe, clear, and flourishing Web3 environment by utilizing the PEC-Framework for Investor Protection, Market Efficiency, and Credibility & Safeguards. The objective of these guidelines is to enhance market confidence by attracting reputable projects and investors seeking VDA platforms that adhere to transparent and consistent evaluation criteria.
These guidelines specifically address Virtual Digital Assets (VDAs), referring to assets tokenized on existing blockchains, or units of value generated on blockchain or other Distributed Ledger Technology (DLT) networks. Tokens involved in Airdrops, NFTs, ICOs/IEOs/IDOs etc., as separately defined, along with standard disclosures outlining associated risks, fall outside the scope of these guidelines.
While these guidelines are recommendatory in nature, VDA platforms are expected to follow operational frameworks and protocols during the token listing process. This encompasses aspects such as announcement dates, comprehensive project disclosures, safeguards against market abuses, technical evaluations, and thorough staging and testing before public offerings.
Mr. Dilip Chenoy, Chairman, Bharat Web3 Association, said, “As the Chairman of the Bharat Web3 Association, I would like to emphasize the importance of our newly established Token Listing Guidelines. These guidelines reflect our commitment to ensuring a fair, transparent, and secure ecosystem for VDAs. By standardizing the listing process, we aim to build awareness amongst stakeholders around token listing, enhance market confidence, protect investors, and foster sustainable growth in the Web3 domain. Our approach balances innovation with the need for rigorous checks, aligning with international best practices and legal compliance. This marks a significant step in our pursuit of establishing BWA as a Self-Regulatory Organization (SRO) for the sector.”
BWA also released its Consumer Protection Guidelines in December 2023, for member firms. This initiative aims to enhance transparency, accountability, and build consumer trust in the burgeoning Web3 ecosystem. With these two important guidelines, and others under development, BWA intends to promote self-regulation, aiming ultimately to bolster market confidence and enhance consumer protection. Bharat Web3 Association remains committed to excellence and innovation, fostering a trustworthy environment for the responsible growth and sustainability of the Web3 ecosystem in India.
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