Indian cryptocurrency exchange ZebPay has applied for a license in Singapore due to tighter tax policies in India and plans to do the same in the UAE.
The statement came in an interview with outgoing ZebPay CEO Avinash Shekhar. Shekhar is stepping down as CEO to start his own Web3 project, which will receive seed funding from ZebPay. At the same time, Shekhar will continue to work on the stock exchange as a consultant.
He explained that the trading floor is looking for growth opportunities abroad as India’s tax policy is stifling the development of the industry at home. We are talking about a one percent tax on cryptocurrency transactions exceeding 10,000 rupees (about $121). This tax is also provided for those users whose total amount of transactions for the reporting period exceeds 50,000 rupees (about $606).
The imposition of a new tax is costly for local industry players, with trading volumes on major Indian cryptocurrency exchanges down nearly 90%. Daily trading volume on ZebPay dropped from $122 million in October 2021 to $700,000. It was recently revealed that one of India’s largest cryptocurrency trading platforms, WazirX, laid off 40% of its employees to weather the economic downturn. Shekhar said ZebPay had to take a 6% pay cut for non-management employees.
“The imposition of the tax exacerbates the already difficult situation of cryptocurrency platforms in India, so it must be reduced or eliminated, otherwise the situation will not improve. This tax encourages entrepreneurs to develop Web3 projects in jurisdictions that are more loyal to cryptocurrencies, such as Dubai or Singapore,” Shekhar said.
Recall that in September 2018, ZebPay already changed jurisdiction in connection with the ban of the Central Bank of India on the provision of financial services to cryptocurrency exchanges. However, at the beginning of 2020, the exchange resumed work in the country.
Source: Bits
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