At the crypto conference on Thursday, Zhao said, honestly, that there is no place for cryptocurrency in India. India is not a very crypto-friendly environment.
Over the past two years, several crypto-focused venture capital firms have flocked to India. All came together to turn the large community of developers in the world’s second-largest Internet market into an essential Web3 powerhouse.
Zhao is not alone in having such a gloomy view of the Indian market. Finally, many investors and entrepreneurs have similar opinions on the Indian crypto market. Zhao’s comment became famous because no other people expressed their views publicly.
According to Zhao, the country’s high tax environment makes the market less viable for international players. Also, 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 up and running for users.
Also, a user can trade 50 times per day. On the other hand, he will lose 70% of his money. There will be no surplus for an order book trade. So we are still looking for a viable business in India today. However, we are trying and are in conversation with several industries and associations to try promising results.
Further, he added that we are trying to get this message across, but the tax policies should stay the same. Binance plays in countries where the regulations are pro-business and pro-crypto. We can’t go to countries where we don’t see sustainable business growth.
Currently, India has implemented a law to tax virtual currencies. Any income from the transfer of any virtual asset is subject to a 30% tax. The Indian city of New Delhi enjoys a 1% tax deduction on the purchase of virtual assets.
Last year, WazirX processed volumes of around $500 million per day. A person with direct knowledge of the situation said the figure fell below $5 million a month ago.
However, other international exchanges have made an effort to get transactions in India. Coinbase launched its cryptocurrency platform at the beginning of the current year. He later quickly canceled the service due to regulatory issues. Coinbase has backed both CoinDCX and CoinSwitch kuber.
BrainArmstrong, co-founder and CEO of Coinbase, said in May that the company had stopped supporting local payment infrastructure known as UPI.