High crypto taxes in India, announced earlier this year, have resulted in some Indian crypto firms considering a move to cheaper territories, according to Cointelegraph reports.
The country currently levies a 30% tax on cryptocurrency, which effectively puts crypto taxes in the same position as gambling taxes, which is already among India''s highest taxes.
Many Indian crypto corporations are planning to move to the Middle East, where cryptocurrency-friendly policies have attracted firms like Binance and Coinbase.
According to Reuters, India is home to a booming market of up to 20 million crypto investors, which claims that its total cryptocurrency virtual assets market is worth approximately 400 billion rupees or $5.37 billion.
India has the highest crypto adoption rate since Vietnam, boasting more than 100 million investors in the region, according to anAsian crypto fintech firmTripleA. It is ranked at the top ofChainalysis Global Crypto Adoption Index in 2021.
There is a clear possibility that high taxes are throng the industry.
According to hiscrypto influencer, crypto and blockchain are now legal and encouraged in the United Kingdom, although a 30% tax on all cryptocurrency trading hinders the growth. "For the time being, India only has an interest in what blockchain can do for the country, not what Bitcoin can do for its citizens.
The country is planning a central bank digital currency (CBDC) later this year, joking 100-odd countries, including the United States, who are constantly looking into the viability of a CBDC.
Despite this, India''s central bank has criticised virtual assets for their price volatility and the existence of a "money-laundering" and "terror financing."
New Delhi is drafting regulations that would require the state of India to review cryptocurrency before passing into law.