UAE and Singapore could be next crypto hubs, thanks to India’s lack of regulatory clarity

February 24, 2022

By Priyanka Shetty

Union finance minister Nirmala Sitharaman announced in her Budget speech that the Reserve Bank of India (RBI) will launch its digital currency in the year starting April 1. However, there was a catch that the income from the transfer of all virtual assets will also be taxed at 30%. This turn of events has somehow turned out to be a boon for the nations that want to widen their crypto base.

Here’s what you need to know:

  • 30% of tax levy has made many exchanges in India move bases to countries that are more crypto-friendly, according to NDTV.
  • The change is already here as Ethereum scaling platform Polygon which had its center in Bengaluru, India has moved most of its operations to Dubai and USA.
  • Singapore and UAE are certainly trying to make the most of the situation and are doing their best to pursue crypto firms.
  • Bloomberg reported that UAE is all set to issue federal licenses for virtual asset dealers by the end of March 2022 to attract some of the world’s biggest crypto companies, according to a government official. UAE has also completed a risk assessment on virtual assets late last year, involving 14 public-sector agencies and 16 private-sector actors to get more business.
  • Binance Holdings Ltd., the world’s largest cryptocurrency exchange by trading volume, is one of those big crypto firms. A country-wide licensing system for digital-asset companies can help the UAE to compete with countries like Singapore and Hong Kong, which are also popular bases for crypto firms.
  • According to NDTV reports, in late December 2021, Binance signed an agreement with the Dubai World Trade Centre Authority (DWTCA). The agreement makes Binance one of the first cryptocurrency exchanges to join the DWTCA’s new crypto center.
  • Singapore is in the rat race and has its eyes set on crypto exchanges. Binance Holdings is currently contemplating setting up a base in Singapore even as the Monetary Authority of Singapore is also working hard to regulate crypto in the country.

About the author

Based in Bengaluru, Priyanka Shetty is a freelance reporter for Blockchain Asset Review.

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