United

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<a href="https://bitcoinworld.co.in/indian-crypto-firms-migrate-to-dubai-due-to-stringent-tax-laws/" title="Indian Crypto Firms Migrate To Dubai Due To Stringent Tax Laws" rel="noopener noreferrer nofollow"></a>
Indian crypto firms are increasingly shifting their operations to Dubai. This move is largely attributed to the contrasting regulatory landscapes in India and the United Arab Emirates (UAE).&nbsp;
India’s stringent tax laws and uncertain legal framework for digital currencies have been the primary catalysts driving this trend.
According to the RBI Remittance Survey 2021, India’s expatriate population in the UAE contributes about 18% to the nation’s $110 billion global remittance inflow.&nbsp;
This figure underscores the financial interconnection between India and the UAE, extending into the blockchain and Web3 sectors.&nbsp;
The bilateral trade between these countries has also escalated, reaching $85 billion last year, emphasizing their growing economic rapport.
The decision of Indian crypto firms to set up shop in Dubai can be largely attributed to the stark contrast in the regulatory environments between the two countries.&nbsp;
Sumit Gupta, CEO of CoinDCX, highlighted the preference for Dubai or Singapore among many Web3 founders due to clear regulations and robust community support.&nbsp;
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This directly responds to the Indian government’s recent introduction of a 30% tax on cryptocurrency trading profits and an additional 1% tax deducted at source on transactions exceeding 10,000 rupees.&nbsp;
These measures have resulted in a noticeable downturn in India’s local crypto market.
Gupta noted that despite India’s leading position in grassroots cryptocurrency adoption, the high tax rates are pushing much of this activity into alternative channels.&nbsp;
Dubai, conversely, offers a more welcoming climate with low taxes, ease of business setup, and a dedicated regulatory framework for digital assets. \
The Dubai Multi Commodities Centre (DMCC), a significant commercial hub, has become a favored destination for these companies. The DMCC is home to over 23,000 companies, many of which are from India.
<h3 id="span-style-font-weight-400-dubai-rise-as-a-global-crypto-hub-span">Dubai Rise As A Global Crypto Hub</h3>
Belal Jassoma, head of business development at DMCC, underscored Dubai’s role in attracting diverse international businesses, positioning it as a global hub.&nbsp;
This shift aligns with a broader trend in the crypto world, where regions like the Middle East and North Africa (MENA) are emerging as influential players.&nbsp;
The MENA region recorded a staggering $400 billion in cryptocurrency transactions, highlighting its burgeoning importance in the digital currency sphere.
This trend is not just about tax benefits or ease of doing business. It reflects a larger narrative where regions with clear and supportive regulations become magnets for crypto firms.&nbsp;
As Indian companies continue to navigate regulatory challenges at home, Dubai’s progressive stance offers a haven and a strategic position for these firms to access global markets.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/iran-joins-brics-in-plot-to-permanently-dethrone-the-us-dollar/" aria-label="“Iran Joins BRICS In Plot To Permanently Dethrone The US Dollar” (Edit)" rel="noopener noreferrer nofollow">Iran Joins BRICS In Plot To Permanently Dethrone The US Dollar</a>
As Dubai cements its position as a hub for the crypto industry, it stands as a testament to the importance of regulatory clarity and support for innovation.&nbsp;
Indian cryptocurrency firms, in <a href="https://www.scmp.com/business/banking-finance/article/3247615/silicon-valley-sand-dunes-why-indian-cryptocurrency-firms-are-eying-dubai-growth?module=latest&amp;pgtype=homepage" rel="noopener noreferrer nofollow">their</a> pursuit of growth and sustainability, find themselves at the crossroads of regulatory adaptation and global market access.&nbsp;
Compared with India’s rigorous tax regime, Dubai’s welcoming approach is reshaping the crypto industry’s landscape, reflecting a broader global shift towards regions that foster a conducive environment for digital currencies and blockchain technology.
The post <a href="https://bitcoinworld.co.in/indian-crypto-firms-migrate-to-dubai-due-to-stringent-tax-laws/" rel="noopener noreferrer nofollow">Indian Crypto Firms Migrate To Dubai Due To Stringent Tax Laws</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

Indian Crypto Firms Migrate To Dubai Due To Stringent Tax Laws

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