Team Blitz India
NEW DELHI: Cryptocurrency firms are finding it suitable to shift to Dubai after the Central Government introduced a 30 per cent tax on cryptocurrency trading profits. The companies are finding the digital currency climate in the United Arab Emirates more favourable.
As per industry experts, the relocation of companies comes after the Indian government introduced a 30 per cent tax on cryptocurrency trading profits and one per cent tax on transactions exceeding Rs 10,000 in June 2022. However, the favourable policies and growing market of the Middle East and North Africa (MENA) region is also attributed for the shift of the companies.
Reports suggest that Dubai’s low taxes, ease of business establishment, and dedicated regulatory framework for digital assets make it an attractive destination for crypto firms and Indian companies are also opting for it.
Currently, the Dubai Multi Commodities Centre (DMCC) houses over 23,000 companies of which a substantial 3,700 companies are from India.
“A lot of Web3 founders prefer Dubai or Singapore as their hub because they have clarity and certainty around regulations and greater community support,” Sumit Gupta, CEO of CoinDCX, told media recently.
“We have seen a decline of more than 90 per cent in volumes. That’s a huge, steep decline. And what you have seen is that India continues to be number one when it comes to grassroot crypto adoption, but a lot of that activity is happening on alternative channels because of the high tax rates, he added.
The move of companies to Dubai is in line with trend globally, with the MENA region emerging in the last few years as a major player. With 400 billion dollars in bitcoin transactions, the region is becoming increasingly important in the world of digital currencies.
