According to a local media outlet, the co-founders of Indian cryptocurrency exchange WazirX, Nischal Shetty and Siddharth Menon have moved from India to Dubai.
East WazirX Planning a movement for Dubai?
Shetty and Menon, sources say, moved to Dubai with their families, despite WazirX having offices in Mumbai and Bangalore. However, according to one of the people, Sameer Mhatre, co-founder and chief technology officer of WazirX, continues to operate from India. WazirX is an entire small company, so this could be the first indicator that the company is moving its headquarters. Shelty also spoke out against the brain drain in India, in which talented people migrate to more progressive countries.
CEOs are leaving the country for a reason: India has implemented a 30% tax on virtual digital assets and a 1% withholding tax (TDS) deduction, leading to a significant drop in volumes of transactions on national cryptocurrency exchanges. Additionally, the government has stated that it will deduct no losses on VDAs from profits, and cryptocurrency mining will be subject to taxes, which has sparked outrage among industry players.
Many crypto companies are flocking to Dubai.
It is still unclear if WazirX will move its headquarters to Dubai. Still, it would be a wise step. Dubai has made itself available to crypto exchanges that struggled to find a suitable location. Bybit has just opened its global headquarters in Dubai, while FTX, Binance, and Crypto.com have also established regional headquarters. It seems to be turning into a hub in its own right due to its location at the crossroads of Europe, Africa, and Asia. In contrast, countries like Singapore seem less crypto-friendly than one might think. Imagined it before.
WazirX’s decision to move its headquarters from India to Dubai would indicate that excessive taxes are scaring off crypto whales. It is also unclear whether wealthier Indians involved in crypto or crypto exchanges will follow, as Indian authorities are making it difficult to operate.