Degen Lawyer's Newsletter - Jolt to Indian Gaming Companies, Regulatory Concerns over AI under-regulation? and More!

GM. Welcome to Degen Lawyer's Newsletter, where we bring you your weekly dose of legal insights, and regulatory updates in the emerging tech and law space. Our expert lawyers serve up curated analysis, hot takes, and expert commentary, sprinkled with a healthy dose of the wacky and meme-worthy. Enjoy!

In this week’s edition:

1. India ranks No. 1 in crypto Adoption:

   30% crypto tax notwithstanding, the much awaited 2023 Global Crypto Adoption Report placed India firmly at No. 1 in terms of Crypto Adoption. 6 of the top 10 countries adopting crypto are located in the Central, Southern Asia and Oceania (CSAO) region. Kudos to Indians for going strong despite the crypto winter and the regulatory environment

2. Indian Online Gaming Companies receive INR 55,000 Crore Tax Demand:

   It has been a rough couple of months for Indian Online Gaming Companies. First, it started with the 28% tax by the government and now the massive tax demand. In particular gaming giant Dream 11 has received a Goods and Services Tax (GST) tax of INR 25,000 Crores making it India’s largest EVER indirect tax notice. OUCH! Talk about a knockout punch. Experts fear this might be the end of what till recently was considered one of India’s most promising sunrise sectors. The companies are sure to challenge this before the appropriate authorities.

3. UK Competition Commission concerned about AI development being dominated by few players:

   The Competition and Markets Authority (CMA) of the UK while analysing AI models and competition has come out with guiding principles to ensure consumer protection and healthy competition, the principles are focused on increasing access and transparency. It’s good to see regulators being proactive.

   Regulatory Watch - Are fears of AI under-regulation valid?

   Arguably for the first time in human history, entrepreneurs want regulations to be put in place before the technology reaches its final evolution.

   

   
   Sam Altman of ChatGPT fame has recently said this:

   Government artificial intelligence (AI) regulation is nothing to fear. He also added - “I worry about under-regulation. People in our industry bash regulation a lot. We’ve been calling for regulation, but only of the most powerful systems. Models that are like 10,000 times the power of GPT4, models that are like as smart as human civilization, whatever, those probably deserve some regulation.”

   Other industry goliaths like Geoffrey Hinton quit Google to make his point on the dangers of AI. He also supported the call to stop AI system training till certain railguards are put in place which was supported by the likes of everyone from Elon to Steve Wozniak. However this of course did nothing. Once the Pandora’s box is opened there’s no going back.

   

While countries are grappling with the best way to regulate this, several different approaches ranging from a multi-tiered approach on sector and effect-oriented regulations (EU) to having it completely up to the industry bodies (Japan)

For those wondering why the fears are so widespread, it is worth listening to a long-form podcast or watching a video on it. We would recommend listening to this excellent one on the Sam Harris podcast or any one of the numerous episodes on the Lex Friedman podcast. This technology is going to fundamentally change how we live and it would be a disservice not to educate yourself on it. The only way to understand it is to stay informed about the rapid and often astonishing developments in the AI space.

Weekly Explainer

Artificial General Intelligence

An artificial general intelligence (AGI) is a hypothetical type of intelligent agent. If realized, an AGI could learn to accomplish any intellectual task. AI is typically focused on solving specific problems, while AGI is designed to be able to solve any problem that a human can. Level of intelligence: AI systems are typically much less intelligent than humans, while AGI systems are designed to be as intelligent as humans or even more intelligent. The fears expressed by several AI experts come from humanity barrelling towards AGI (which we have not yet achieved)

To learn more about such concepts, visit our resource page linked below:

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