Some enterprises have relocated to other countries due to the government’s ambivalence on crypto legislation. If the uncertainty persists, investors and crypto experts may follow.
India’s crypto expertise has been fleeing the country for a long time, and the government’s recent move to tax crypto revenue hasn’t halted the country’s blockchain skills shortage.
According to the report, 30 to 50 Indian cryptocurrency and blockchain startups operate out of Dubai and Singapore. The exodus of talent began in 2018 when RBI issued a de facto ban on cryptocurrency. Zebpay, one of India’s leading exchanges, closed its doors and relocated to Singapore. However, after the Supreme Court overturned the RBI’s crypto banking prohibition in 2020, it has restarted services for Indians.
Akshay Aggarwal, the co-founder of crypto community Blockchain India, believes India will stay appealing as a market for crypto firms as India is the world’s second-most populated country. However, even if enterprises continue to supply services in the nation, they may choose to relocate due to regulatory uncertainty.
Vauld, an Indian crypto exchange, was founded in Singapore in 2018 to safeguard against slow growth, and it did not serve its domestic market until the RBI lifted the crypto prohibition.
The British Virgin Islands, as well as Dubai, are at the peak of the migration wish list for those enticed by the overseas jurisdictions’ tax-free approach to cryptocurrency.
The administration is reportedly contemplating resuming normal air travel on March 15, only weeks earlier April’s crypto tax takes effect. Meanwhile, local industrial players continue to look for new houses.
