Since Indian Crypto Bill has passed and 30% Tax and 1%TDS have been imposed on cryptocurrency transactions, the number of crypto transactions started decreasing. All cryptocurrency exchanges and investors are in panic due to unclear guidelines related to crypto Tax.
The result now has been seen, Nischal Shetty and Siddharth Menon, the founders of WazirX backed by Binance have been moving their base to Dubai, United Arab Emirates. Now speculations has been arise about other crypto exchanges and Web3 startups and their management moving to Dubai.
While Speaking to WazirX they clarified, “We are a remote-first organization with employees from over 70+ locations. This gives all the company employees the option to work from anywhere, subject to their comfort and convenience unless they are required to travel officially. WazirX is headquartered in Mumbai, and there is no change in any of our operating procedures. It is business as usual”.
If other exchanges will also move to Dubai then it will be due to India’s negative stance on cryptocurrencies. Currently, there is a lack of clarity about the regulation of virtual digital assets in India. Including the Indian government, the Reserve Bank of India (RBI) has also opted for a hostile approach in the matter of virtual currencies.
Why Dubai Is Becoming Home for Crypto Service Providers?
Dubai seems to offer a better platform and hope for crypto service providers. Dubai’s crypto facilitating laws are also a big reason for crypto businesses to ‘Work from Dubai’.
Recently we have also seen many Crypto Expo Events happening in Dubai to attract Crypto service providers and businesses related to it. Now Dubai is preparing itself as a World’s Crypto Capital by providing crypto facilitating laws.
Recently the current Ruler of Dubai, Sheikh Mohammed Bin Rashid, has also announced that the “emirate had passed its first law governing virtual assets and that the crypto ecosystem will be overseen by an independent regulator”.
Dubai has passed Dubai Virtual Asset Regulation Law (VARA) to promote Dubai and UAE as regional and global crypto hubs.
Due to soft crypto policy and facilities, Indian Crypto exchanges will also choose Dubai to grow their business. In the future, we may see other exchanges will also move toward Dubai.
Final Thoughts: The world is adopting crypto and Web3 and if the Indian government did not take any step in regulating and facilitating a positive law in favor of cryptocurrencies and businesses related to them, then we may lose a big opportunity in this field.