On Thursday, at the crypto conference, Zhao said, honestly speaking, there is no scope for cryptocurrency in India. India is not a very crypto-friendly environment.
Over the past two years, multiple crypto-focused venture capital firms have flocked to India. All came to turn the world’s second-largest internet market’s large developer community into an essential web3 powerhouse.
Zhao is not the only one with such a grim view of the Indian market. Eventually, many investors and entrepreneurs have similar opinions about the Indian crypto market. Zhao’s comment got famous because no other person expressed their views publicly.
According to Zhao, the country’s high tax environment makes the market less viable for international players. Additionally, if you pay a 1% tax on each transaction, there will be fewer transactions. However, Binance, the world’s largest cryptocurrency exchange by volume, is operational for users.
Besides, a user can trade 50 times a day. In contrast, he will lose 70% of his money. There will be no surplus for an order book type of exchange. So we are still looking for a viable business in India today. However, we are trying and in conversation with several industries and associations to try some promising results.
Moreover, he added that we are trying to convey this message, but the tax policies must stay the same. Binance plays in countries where regulations are pro-business and pro-crypto. We cannot go the countries where we don’t see sustainable business growth.
Currently, India enforced a law for taxing virtual currencies. Any income from the transfer of any virtual assets is subject to a 30% tax. India’s city, New Delhi, is taking a 1% tax deduction on the purchase of virtual assets.
Last year, WazirX processed volumes of about $ 500 million per day. A person with direct knowledge of the situation said the figure had dropped below $5 million a month ago.
However, other international exchanges made an effort to gain transactions in India. Coinbase launched its cryptocurrency platform earlier current year. Later, it swiftly rolled back the service due to regulatory concerns. Coinbase has backed both CoinDCX and CoinSwitch kuber.
BrainArmstrong, co-founder and CEO of Coinbase, stated in May that the company had stopped supporting local payments infrastructure known as UPI.