WHY INDIAN CRYPTOCURRENCY EXCHANGES ARE MOVING TO DUBAI? W W W . F I N L A W . I N F I N L A W C O N S U L T A N C Y P V T . L T D .
IS INDIA LOSING OUT ON THE CRYPTOCU RRENCY REVOLUTI ON?
Due to India's ambiguous policy on virtual assets and unfair tax laws, its cryptocurrency trading platforms are being forced to relocate to Dubai. The industry, which peaked in November 2021, has been impacted by the current worldwide cryptocurrency meltdown as well as strict restrictions and regulatory changes in India.
Many developers of Web 3.0 and cryptocurrency products are relocating to countries with clearer laws. Even obtaining a cryptocurrency exchange license in India is a very tiresome task. That’s the reason investors aren’t showing interest to do lawful crypto trading in India.
is the
place for
1961 Finlaw Consultancy Pvt. Ltd. WWW.FINLAW.IN Why Dubai
favourable
cryptocurrency exchange-
THE NATION LEVIES UP TO 30% IN TAXES ON PROFITS FROM THE EXCHANGE OF NONFUNGIBLE TOKENS AND DIGITAL ASSETS. ADDITIONALLY, IT DEDUCTS 1% OF SOURCES OF INCOME OVER 10,000 RUPEES ($127) AS TAX. CRYPTO AND DIGITAL ASSET GIFTS ARE TAXED AS WELL. SUCH TAXES DON'T EXIST IN DUBAI. EARNINGS FROM DIGITAL PROPERTIES ARE ESSENTIALLY TAX-FREE, EXCEPT FOR A 5% VALUE-ADDED TAX. DUE TO THESE FACTORS, THE CITY HAS BECOME A MAGNET FOR CRYPTOCURRENCY INVESTMENTS.
Such taxes don't exist in Dubai.
Earnings from digital properties are essentially tax-free, except for a 5% value-added tax. Due to these factors, the city has become a magnet for cryptocurrency investments. India's digital currency policy has flaws, but countries looking to develop their crypto networks may benefit from this.
The desire of several Indian cryptocurrency exchanges to move from India to Dubai suggests that the region may soon overtake the rest of the world as the leading cryptocurrency hub. The flexible rules and regulations for cryptocurrency exchange licenses in Dubai emerged as the finest crypto hub for potential investors.
AS IT TURNS OUT, CRYPTOCURRENCY EXCHANGES OPERATING IN INDIA SEEK TO TAKE ADVANTAGE OF THE POSITIVE ENVIRONMENT PROVIDED BY GOVERNMENTS THAT SUPPORT CRYPTOCURRENCIES, SUCH AS THE GOVERNMENT OF DUBAI. THIS CONTRASTS SHARPLY WITH INDIA'S UNFAVOURABLE CRYPTO ENVIRONMENT, WHICH IS A RESULT OF ITS LEADERSHIP PROBLEMS.
THE BIGGEST SOURCE OF UNHAPPINESS AMONG PARTICIPANTS IN THE BITCOIN BUSINESS IS INDIA'S ANTI-CRYPTOCURRENCY STANCE. FURTHERMORE, THE RESERVE BANK OF INDIA (RBI) HAS CONTINUED TO HAVE A NEGATIVE VIEW OF CRYPTOCURRENCIES. IN 2022, THERE WILL BE A SIGNIFICANT TRANSFORMATION IN THE FINANCIAL SERVICES INDUSTRY IN THE MIDDLE EAST. IN ADDITION TO OTHER TRENDS, THE CHANGE WILL BE INFLUENCED BY CRYPTOCURRENCIES, DIGITAL PAYMENTS, AND BAAS. (BANKING AS A SERVICE).
The market for cryptocurrencies is growing around the globe and is even predicted to eventually supplant established financial institutions. Dubai is quickly becoming one of the top venues for trading cryptocurrencies due to its numerous rules that encourage blockchain technology.
FINLAW CONSULTANCY PVT. LTD.
THANK YOU!Contactus 1800-4198-402 / www.finlaw.in 9820907711 FOR FURTHER QUESTIONS, PLEASE SEND YOUR EMAIL TO ADMIN@FINLAW.IN