Countries looking to expand their crypto networks may benefit from the ongoing uncertainty over the regulation of cryptocurrencies in India. Singapore and the United Arab Emirates (UAE) are among such countries. They are on their way to transform into the new crypto hub of the world. Many Indian exchanges are also looking to shift their base from India. Efforts are on to shift from India to cryptocurrency exchanges after the central government proposed a 30 per cent tax on all virtual assets. Meanwhile, Dubai and Singapore are doing their best to entice crypto buyers.
According to a Bloomberg report, by the end of the first quarter of this year, the process of issuing federal licenses for virtual assets service providers in the UAE will begin in full swing. Its purpose is to encourage crypto giants from around the world, including India.
UAE is Now Trying to Become the Hub
Binance, one of the largest cryptocurrency exchanges in terms of daily trading volume, is also in talks with the country’s regulators for its possible headquarters in the UAE. The UAE, one of the fastest growing crypto markets in the world, ranks third among the countries of the Middle East. Turkey and Lebanon are ahead of him. UAE is now trying to become the hub of this sector. In view of this, in December last year Binance entered into an agreement with the Dubai World Trade Center Authority (DWTCA). Under this, an International Virtual Assets Ecosystem is being established. Binance is one of the first cryptocurrency exchanges to join DWTCA’s new crypto center under the agreement.
Meanwhile, Singapore is also eyeing crypto exchanges. According to the report, the Monetary Authority, which controls Singapore’s banks and financial firms, is working on ‘stronger regulations’ for cryptocurrencies. Singapore has also tried to woo Binance Holdings. He wants Binance to establish its base in Singapore.
Meanwhile, some changes have also been seen. Ethereum scaling platform ‘Polygon’ has shifted most of its operations to Dubai and the US. Earlier it was originally located in Bangalore. Significantly, during this month’s budget announcement, Finance Minister Nirmala Sitharaman had said that income from cryptocurrencies and non-fungible tokens (NFTs) will be kept in the tax bracket of 30 percent. Amidst the uncertainty surrounding cryptocurrencies in India, many crypto exchanges are looking to place bets in countries like UAE and Singapore, where the rules are clear and easy.