United Arab Emirates (UAE) welcoming regulatory and tax environment has made it an attractive destination for many crypto companies. Indian cryptocurrency companies have faced stringent tax regulations and legal conflicts since the beginning which has led to many of them relocating to Dubai.
According to a Severy from the Reserve Bank of India (RBI), around $19.8 billion has been remitted by India’s expat population living in UAE to India in 2021
India received around $110 billion from global remittances in 2021 and 18% of that came from expats living in UAE.
Recently, Binance and 9 other crypto exchanges were issued notices by the Indian government which made Indian crypto companies move to Dubai.
In 2023, the trade between India and the UAE grew to $85 billion and the economic relationship between the two countries is getting stronger every year.
Exchanges, blockchain, and web3 companies operating in India are flocking to UAE and Singapore as they have clarity and certainty around regulations.
The Indian government imposed a 30% tax on crypto trading profits which is a significant amount which is another reason why India Crypto companies are relocating.
Dubai: A Growing Crypto Hub
The ease of setting up a business in Dubai Multi Commodities Centre (DMCC) and low taxes have made Dubai a top destination for crypto companies from around the world.
Dubai Multi Commodities Centre (DMCC) has a whooping 23,000 companies registered and Indian companies have a significant portion of it. UAE stands as a global hub in terms of trade and business.