We Don’t See a Viable Business in India – Exchanges Bitcoin News

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Binance CEO Changpeng Zhao (CZ) says India is currently not a viable business environment for its cryptocurrency exchange, citing a strict tax regime. The executive explained: “Binance goes to countries where regulations are pro-crypto and pro-business.”

Binance CEO of Indian Crypto Environment

The CEO of cryptocurrency exchange Binance, Changpeng Zhao (CZ), currently does not see India as a viable country to expand his cryptocurrency exchanges. He detailed at Techcrunch Crypto conference on Thursday:

To be honest, I don’t think India is a very crypto-friendly environment.

Zhao is particularly put off by the crypto tax regime that India’s government implemented earlier this year. In addition to tax on crypto income at 30%, crypto transactions are subject to 1% tax deduction at source (TDS).

Citing India’s aggressive tax environment, Binance’s CEO said: “If you tax 1% on every transaction, there won’t be that many transactions.”

He emphasized:

A user could trade 50 times a day and they will lose like 70% of their money. There will not be any volume for an order book type of exchange. So we don’t see a viable business in India today.

“We just have to wait. We’re talking to some industry associations and influential people and trying to put some logic in there,” CZ continued.

“We are trying to convey this message, but tax policies usually take a long time to change,” Zhao warned, adding:

Binance is going to countries where regulations are pro-crypto and pro-business. We don’t go to countries where we won’t have a sustainable business — or any business, regardless of whether we go or not.

Several other global cryptocurrency exchanges have tried to launch in India, including the Nasdaq-listed cryptocurrency exchange Coinbase. The exchange tried to launch in India in April but soon stopped services. Coinbase CEO Brian Armstrong said in May that the company disabled its support for the local payment system UPI “due to some informal pressure from the Reserve Bank of India.”

While cryptocurrency income and transactions are taxed, India does not yet have a regulatory framework for cryptocurrency. The Indian finance minister, Nirmala Sitharaman, previously said that crypto regulation will be one of the topics of focus during India’s G20 presidency. The government hopes to establish a regulatory framework for crypto technology after discussing it with other G20 countries.

What do you think of Binance CEO Changpeng Zhao’s comments? Let us know in the comments section below.

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Kevin Helms

An Austrian Economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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