“Many Web3 founders prefer Dubai or Singapore as their hub because they have clarity and certainty around regulations and greater community support. When setting up a business, investors feel more comfortable in a jurisdiction where there are no last-minute surprises. “I am starting to see this trend on the ground and it needs to be reversed,” said Sumit Gupta, CEO of Indian cryptocurrency exchange CoinDCX..
“We have seen a [volume] decrease of more than 90 percent. This is a huge and steep drop. “India remains number one when it comes to popular adoption of cryptocurrencies, but much of that activity takes place in alternative channels due to high tax rates,” said Gupta.
Finance Minister Nirmala Sitharaman last year introduced a 30 percent tax plus applicable surcharge and a 4 percent levy on profits from cryptocurrency trading.
“Regulatory arbitrage” may not last much longer, Gupta said. India's Finance Ministry did not respond to an interview request or provide comment for this article.
Hong Kong Crypto U-turn Draws Mainland Banking Interest
Hong Kong Crypto U-turn Draws Mainland Banking Interest
“Arbitration will not last long and has to disappear. The government is aware of this. It's a question of when they decide to eliminate that arbitration. Serving Indian customers from abroad is not scalable, unreliable and non-compliant,” Gupta said.
Low taxes, ease of setting up companies, a dedicated regulator and access to international markets like Asia and Europe are driving the wave of Indian cryptocurrency companies towards Dubai.
Cryptocurrency projects can reach the rest of the world through Dubai. "New business [from] the UK, India, China, the US and Russia make up the top 5 per cent,” Belal Jassoma, head of business development at Dubai Multi Commodities Center (DMCC), said at the Future Blockchain Summit. "Dubai is basically a hub."
"VARA has crafted its regulations to be adaptable to market demands and agile in addressing global market risks, with the aim of attracting entrepreneurs to solidify Dubai's position as a central hub for Web3," said Sunita Khatri, commercial director of Dubai World Trade Center (DWTC). ).
“MENA as a region is quite an interesting opportunity for CoinDCX to take advantage of because it is a fast-growing market, the adoption numbers there are quite impressive and Web3 can unlock many opportunities in the India-UAE corridor. New use cases are emerging around remittances and payments in that region,” said Gupta.
03:14
FTX Cryptocurrency Exchange Founder Sam Bankman-Fried Convicted by US Court on Fraud Charges
FTX Cryptocurrency Exchange Founder Sam Bankman-Fried Convicted by US Court on Fraud Charges
"BitOasis was a strategic investment approach by CoinDCX to create an impact in international markets, perhaps not directly, but by partnering with the right companies that are aligned with our mission and values," the company said.
06:54
Is cryptocurrency too risky for China?
Is cryptocurrency too risky for China?
“We have always been an Australian-only exchange, but with the difficulties and challenges, we are now actively looking to expand overseas,” said Caroline Bowler, CEO of BTC Markets.
“Dubai [has] “We have opted for something very personalized, very specific,” he said. "They are looking to develop this sector in the long term."
Ripple's XRP recently received approval from the Dubai Financial Services Authority (DFSA) for use within the Dubai International Financial Center (DIFC). Virtual asset companies licensed in the DIFC can now offer XRP as part of their services.
Hong Kong digital asset market needs safety barriers and investor education: HKMA CEO
Hong Kong digital asset market needs safety barriers and investor education: HKMA CEO
