Binance CEO: We Don't See a Viable Business in India
Crypto News

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

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

Binance’s CEO on Indian Crypto Environment

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

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

Zhao is particularly discouraged by the crypto tax regime that the government of India implemented earlier this year. In addition to taxing crypto income at 30%, crypto transactions are subject to a 1% tax deduction at the source (TDS).

Citing India’s aggressive tax environment, the Binance CEO said: “If you are going to tax 1% on each transaction, there is not going to be that many transactions.”

He stressed:

A user could trade 50 times a day and they will lose like 70% of their money. There is not going to 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 are in conversation with a number of industry associations and influential people and trying to put some logic there,” CZ continued.

“We are trying to get this message across, but tax policies typically take a long time to change,” Zhao cautioned, adding:

Binance goes 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 or not we go.

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

While cryptocurrency income and transactions are taxed, India still does not 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 tech-driven regulatory framework for crypto after discussing it with other G20 countries.

What do you think about the comments by Binance CEO Changpeng Zhao? Let us know in the comments section below.

Kevin Helms

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

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. EdaFace.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Related posts

Eurozone Finance Ministers Pledge Support for Digital Euro Project, Talk Privacy – Finance EdaFace News

Gerald Hoffman

ZOGI Token Launches on Cronos, BNB Chain and Ethereum With Revolutionary Wrapper – Sponsored EdaFace News

Gerald Hoffman

‘Build on Bitcoin’ Startup Secures $10M in Seed Funding to Advance Hybrid L2

Gerald Hoffman

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More