In a significant development, Indian cryptocurrency companies are increasingly relocating to Dubai due to the favorable digital currency climate in the United Arab Emirates (UAE).
The relocation of companies comes after Indian government introduced a 30 percent tax on cryptocurrency trading profits and one percent tax on transactions exceeding Rs 10,000 in June 2022.
On the other hand, Dubai’s low taxes, ease of business establishment, and dedicated regulatory framework for digital assets make it an attractive destination for crypto firms.
The Dubai Multi Commodities Centre (DMCC) houses over 23,000 companies, with 3,700 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 Forkast.
“We have seen a decline of more than 90 percent 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 action is in line with the burgeoning cryptocurrency trend, in which the Middle East and North Africa (MENA) are emerging as major players.
With 400 billion dollars in bitcoin transactions, the MENA area is becoming increasingly important in the world of digital currencies.
