The co-founder and CEO of cryptocurrency exchange Binance, Changpeng Zhao, stated that he does not currently see a lot of potential in the Indian crypto sector.
One of the most important individuals in the cryptocurrency sector, Zhao, remarked at a TechCrunch crypto conference, “I don’t think India is a very crypto-friendly climate.
Details about Binance CEO Changpeng Zhao says India is not a Viable Market for Crypto:
Zhao’s remarks come after the catastrophic fall of Binance’s rival FTX, which has shaken the cryptocurrency community. Particularly in India, the cryptocurrency business has been constantly in change as a result of regulatory uncertainty & government taxing enthusiasm.
Zhao also commented on India’s tax system. He claims that the nation’s high tax environment has made it challenging for multinational corporations to function.
There won’t be that many transactions if you impose a 1 percent tax on each one, he claimed.
A person may make 50 trades every day and still lose 70% of their capital. A form of exchange with an order book won’t have any volume. Thus, we do not now envisage a profitable business in India. All we can do is wait. We are attempting to provide some reasoning there in our conversations with various industry associations and powerful figures,” he said.
Zhao has already warned about the Indian cryptocurrency sector.
The CEO of Binance earlier this month predicted that India’s high tariffs on cryptocurrency transactions would “destroy the sector” there.
“India has hefty taxes, which would most likely kill the business,” Zhao remarked at a conference in Singapore.
His remarks came after the government imposed a 1% surcharge at the point of sale on digital-asset transfers worth more than Rs 10,000 or on a total of Rs 50,000 in transactions in a single fiscal year, effectively reducing trading volumes.
Since April, all gains on the transfer of crypto assets have been taxed at 30%, a rate higher than in many other jurisdictions, including the United States and the United Kingdom.
As laws suffocate the domestic sector, one of India’s oldest bitcoin exchanges, ZebPay, is aiming to go outside.
WazirX, too, felt the burden of the taxes, with trading volumes dwindling and an ugly fight with Binance over ownership further depressing transactions.